Dekel Capital has launched a new credit platform offering multifamily owners and investors mezzanine and preferred equity capital between $2 million and $10 million for the acquisition and refinancing of assets throughout the United States. 

The new capital strategy adds to the Los Angeles-based real estate merchant bank’s suite of services that provide real estate investors and owners with financial solutions across the entire capital stack including permanent loans and joint venture equity.   

“The dislocation in the capital markets has placed a severe burden on today’s real estate owners, especially those who are exiting construction loans or facing maturing senior debt and are not in a position to sell,” said Dekel Founder and Managing Principal Shlomi Ronen.   “With lower LTVs, increasing operating costs, and pressures of covenant compliance, lenders are requiring owners to come up with more equity or risk losing financing or worse their asset.   Preferred equity fills the gap in the capital stack and allows sponsors to use what equity they have more wisely.” 

With an increasing number of preferred equity investors entering the market, Dekel will cater to what they believe is an underserved segment of the real estate borrowing community 

“What we are seeing in today’s lending environment is the majority of borrowers still needing to fill on average a $2 million to $10 million gap,” added Dekel Vice President Benjamin Grosberg.   “The majority of this type of capital is offered by institutional players, and they simply can’t carve those smaller allocations out of a billion-dollar fund.”   

Dekel plans to deploy $100 million in preferred equity over the next 12 months.  While focusing on multifamily, Dekel will also consider other commercial assets on a selected basis. 

Earlier this year, Dekel launched a correspondent lending program, under the direction of Managing Director Vishal Vanjani, to originate fixed-rate Life Insurance and CMBS loans on behalf of several capital providers including a global asset manager and large Canadian bank.   

“Through our various strategies we are able to structure the entire capital stack and provide borrowers with financing that can be significantly less than what they were paying on their existing floating rate loans, especially given where indices are right now,” added Ronen. 

Matin Roshan has joined real estate merchant bank Dekel Capital as vice president focusing on originating, structuring and executing debt and equity transactions across all property types, announced company founder and Managing Principal Shlomi Ronen.

Matin joins Dekel after four years at Quantum Capital Partners where he originated more than $400 million in commercial real estate debt.  He has extensive experience in securing financing on a wide variety of complex real estate transactions including the acquisition, refinancing, recapitalization and the adaptive reuse of individual assets and portfolios in hospitality, industrial, multifamily, office and retail. 

“As an experienced investment professional, Matin will play an important role in Dekel’s future as we enter the next phase of growth,” said Ronen. “While our clients have been primarily Southern California based, Matin’s clientele are spread throughout the country, so his expanded Rolodex of clients will dovetail well into our capital raising efforts.”

Matin was born and raised in Los Angeles. He earned a B.S. in Biology from the University of California, Santa Barbara and earned a Certificate in Real Estate from UCLA.

Dekel Capital, has arranged $59 million in construction financing on behalf of The Latigo Group, which has started work on the first significant multifamily project to be developed in Thousand Oaks, CA since 2007. 

When completed, the 3.2-acre, mixed use-development at 299 East Thousand Oaks Boulevard will include 142-unit Class-A apartment homes, 9,820 square feet of ground-level retail and parking for 239 vehicles.

After securing the construction financing from a publicly traded REIT and a Life Insurance Company, Latigo moved forward with the development closely adhering to local and state guidance for construction sites, according to Dekel principal Shlomi Ronen who arranged the financing.

“Despite the havoc that has literally shut down the real estate industry by the Covid-19 pandemic, our two lenders closed and funded their capital,” said Ronen.  “The lack of housing construction in Thousand Oaks over the last decade has led to a notable supply/demand imbalance.  Amid the State lockdown and with financing in place, our client was able to move forward, taking all the necessary and appropriate steps to protect the workers, in order to address this housing need as soon as possible.”       

299 Thousand Oaks is located on the city’s main primary east/west arterial and is near several major shopping and entertainment destinations including 1.3 million-square-foot regional shopping center The Oaks Mall, and the Thousand Oaks Civic Arts Plaza. The project falls within the Thousand Oaks Boulevard Specific Plan which, according to the city’s website, “guides development to revitalize, beautify and create a 3.5-mile mixed-use, pedestrian friendly destination between Duesenberg Drive and Moorpark Road.”

The four-story property includes studio, one- and two-bedroom units which will be offered at an attainable price point for the average two-income working household.  Eleven units will be designated as affordable housing for low income families.  Amenities include a 3,000-square-foot fitness center, pool and garden courtyards, and open space at the rear of the site. The project will also include state of the art “smart technology”  including keyless entry and  remote thermostat control To activate the street, the Sponsor is exploring a variety of dining options including two restaurant concepts and a specialty coffee shop. 

Founded in 2017, The Latigo Group is a privately owned Los Angeles-based real estate investment and development firm specializing in the ownership and development of conventional multifamily, mixed-use, and student housing properties throughout the United States. The firm currently has four ground-up projects under development.

Dekel Capital, on behalf of Los Angeles-based CGI Strategies, has arranged $47.8 million in non-recourse construction financing for the development of a 200-unit multifamily community in Los Angeles’ Koreatown neighborhood.

The loan, which was provided by a national lender, will be used for the construction of a seven-story concrete and wood building, over two levels of subterranean parking at 837 S. Fedora Street. The property will feature a mix of studio, one- and two-bedroom floor plans ranging in size from 622 to 1,000 square feet.  Ten percent of the units are earmarked for low-income renters. Property amenities include a fully equipped fitness center, 6,500-square-foot community lounge and clubhouse, exterior courtyard and a 5,400-square-foot rooftop lounge.

The property is situated six blocks from the Wilshire/Normandie Metro station, providing residents with easy access to major Los Angeles employment centers, as well as recreational and entertainment venues in the area. 

Koreatown is the densest neighborhood in Los Angeles and is primed for another six percent of population growth over the next five years, according to recent research from JLL. Currently, 91 percent of Koreatown residents are renters, making it one of Los Angeles’ premier rental markets. Located four miles east of downtown Los Angeles, the submarket has a particular appeal to millennials, who are drawn to the area’s vibrant restaurant scene, relative affordability, walkability and proximity to the urban core. 

Fedora is CGI’s third ground-up multifamily development totaling 380 units in the Koreatown neighborhood in the past 36 months.

“CGI is an experienced developer that has a strong track record of developing ground-up developments and income-producing real estate in Southern California, including several other developments in the Mid-City/Mid-Wilshire/Koreatown neighborhoods” said Dekel Principal Shlomi Ronen. “Given the strength of the market and the sponsor’s expertise, we received a robust response from potential lenders.”

Construction is expected to be completed by Summer 2022.

Dekel Capital, on behalf of CGI Strategies, has arranged a $47.5 million bridge loan for the acquisition, renovation and stabilization of a vacant 306-unit luxury multifamily community located at 1662 Celebration Boulevard in Celebration, FL.   

Dekel Capital placed the loan with ACORE Capital, a leading commercial real estate finance company. 

Built in 2015, the 14-and-a-half-acre Class A community consists of six, four-story Art Deco-inspired residential buildings that are undergoing significant improvements to correct construction deficiencies. A portion of the financing will be used to complete the improvements, which have been engineered and approved by the County, and bring the property back to market. With repairs expected to be finished by end of year, CGI Strategies is currently marketing units, which range in size from 741 square feet to 1,371 square feet. 

“We were able to demonstrate to the lender that once the construction issues are remediated, the property will be a first-to-rent, highly amenitized community in a burgeoning multifamily market with tremendous demand drivers,” said Dekel Capital Principal Shlomi Ronen. “In addition, CGI is an experienced sponsor that has a track record of acquiring and remedying problematic real estate assets and successfully returning them to market.”   

The community will be rebranded as Astoria at Celebration and features a mix of luxury one- two- and three-bedroom units as well as first-class amenities including a clubhouse, pool, fitness studio, outdoor summer kitchens and a dog park.  The units include nine-foot ceilings, fully equipped island kitchens with stainless steel appliances, 42-inch espresso cabinets, granite countertops, full-size washers and dryers, and large walk in closets.