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Debt & Equity

Procida taps NGKF for $143M specialized note offering

NGKF Capital Markets Loan Sale Advisory Group has been selected by Procida Funding & Advisors to sell a $143 million high-yield, specialized note offering.

The offering is collateralized by a variety of commercial and multihousing real estate assets, located in New Jersey, New York and Philadelphia.

Photo courtesy of Flickr
Photo courtesy of Flickr

NGKF’s Executive Managing Director Steven Schultz, along with Managing Directors Tony Georgiev, Josh Malka and Senior Analyst Matthew Brown will be leading the transaction team. The loans range in size from $1 million to $35 million with terms of six- to 24-months

Procida Funding has specialized in supplying capital and expertise to the real estate community, as well as to small and mid-size businesses, since 1995, originating and managing over $2 billion in loans.

The offering will include whole loans, junior and senior participation, sidecar investments, B-notes and other creative structures.

The loans are held in Procida’s 100 Mile Fund – a fund dedicated to generating opportunistic real estate investments.

The fund has been in operation for four years and has funded in excess of $300 million in transactions, with a 14 percent net annualized return to its investors since inception. NGKF Capital Markets will also provide additional advisory services to the 100 Mile Fund, introducing new investors as separate accounts or direct investors in the fund.

“NGKF Capital Markets’ in-depth understanding of complex loan sales and unique ability to identify and execute loan sale transactions made them an easy selection,” said William Procida, president of Procida Funding, who has worked with both Schultz and New Jersey’s COO David Simson on a range of deals over the years.

According to Schultz in contrast to traditional debt investment opportunities, this offering provides investors the ability to participate in small balance, commercial loans that are already closed, which are often out of the reach of large private equity funds, as well as invest in a variety of loan products, including whole loans, structured A/B notes, sidecar investments and other customized participation structures.

Investors have the flexibility to customize risk premiums based on their risk tolerance and yield requirements.

Procida will also entertain strategic partnerships on a go forward basis for its pipeline.

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