ROCHELLE PARK, NJ — Commercial real estate will remain an attractive investment throughout 2015 with returns on competitive asset classes like stocks and bonds staying relatively low, according to the investment and origination principals of Case Real Estate Capital, LLC (Case). A northern New Jersey-based situational lender and commercial real estate investment company, Case is active in high-yield, sub- and non-performing debt.
On the heels of closing $40 million in transactions in 2014, the company has funding available to further broaden its platform this year. Case focuses on assets located in the tri-state area and South Florida as well as Philadelphia, Baltimore and Washington, DC, concentrating on deals ranging from $2 million to $25 million.
“At Case, we expect to stay active in the industrial and multi-family sectors, which are a clear proxy for economic health and growth,” said Sandy Herrick, founder and managing principal of Case. Herrick has invested in more than $4 billion of commercial properties during his 30+-year career.
In the fourth quarter of 2014, Case purchased a non-performing senior note, with claims in excess of $11.5 million, on a 105,560 s/f industrial portfolio in the Hunts Points section of the Bronx, New York. It also finalized the purchase of a $2.99 million note and final judgment of foreclosure secured by five multi-family/mixed-use assets in Hudson County, NJ.
“Ours is a local business. Clients look to us for that expertise and reliable funding with a quick turnaround,” noted Herrick. Case is also active in South Florida, or the “sixth borough,” where it purchased a non-performing senior note, with claims in excess of $14 million, secured by a 31,000 s/f urban retail property in Miami, FL.
The firm’s financing solutions include traditional and short-term bridge loans, discounted pay-off (DPO) financing, construction financing, and first- and second-mortgage financing to facilitate a wide variety of situations. “We are seeing an improved environment for originated loans right now and that will stretch through 2015,” said Herrick.
To help banks and financial institutions strengthen their balance sheets, Case purchases debt. Its service line includes purchasing performing, sub- and non-performing real estate-secured notes, judgments and liens, as well as vacant and REO properties in anticipation of borrower recapitalization, property control transfer and other liquidity events.
At Case, each debt and property acquisition or loan is evaluated on its own merits, based on the seller’s or borrower’s unique situation, local market conditions and the broad experience of Case’s in-house investment and origination professionals. The company also offers opportunities for local entrepreneurs. Case’s investor base is extremely diverse, including individuals, family offices and institutional investors.