BEB Capital has formed a new division to provide bridge loans for the industry, according to Lee J. Brodsky, BEB Capital chief executive officer.
The new lending division is headed by Keyvan Ghaytanchi, whose title is President of Lending Division. Ghaytanchi will also continue in his current role as chief operating officer of BEB Capital.
“Our intent is to become an important strategic lender/partner in a sector of real estate that is suddenly experiencing very rapid growth but is not well understood by traditional capital sources,” said Ghaytanchi.
“There is strong demand for special situation funding in this sector, and as long-experienced owners and operators of substantial warehouse and distribution property ourselves, we’re in a position to understand the needs of developers, to prudently underwrite the risks, and to help them effectuate their own growth.”
Noting that BEB Capital has, on isolated occasions, made short-term loans to other experienced developers, Brodsky said: “We want to be a helpful partner to other owners who have short-term special funding requirements that may not be easy to fill.
“And since we live and breathe real estate and have previous lending experience on a smaller scale, formally establishing a lending unit is a natural extension of our business and an opportunity to leverage our specialized expertise.”
BEB Capital’s Lending Division will be a direct lender, deploying its own capital and that of its investors, said Ghaytanchi.
“In our first year, the company will operate on a modest scale, targeting $50 million in loans,” he explains. “Beyond that initial period, we anticipate rapid growth in volume as the light industrial market continues to evolve. We will be making strategic hires to further grow this new division”
The new division will make loans on small to mid-sized assets, anywhere on the East Coast, which corresponds to BEB Capital’s own area of operations.
BEB Capital has a real estate and investment portfolio encompassing more than two million square feet of property on the East Coast, including industrial and multifamily assets on Long Island and in New York City. In addition, the firm has interests in a diverse set of businesses, some of which it owns and operates, and others in which it serves as a limited partner.
The firm, headquartered in its own building at 26 Harbor Park Drive in Port Washington, is owned by the Brodsky family, known for its long history in real estate development, and headed by Bert Brodsky.