What we thinkand again, we dont knowis that Pilevsky believed that we had used leverage like everybody else does on [this type of] loan.. But based on 2020 data incorporated in SEC filings and assuming a 100% payout ratio. Is this happening to you frequently? We see a lot of deals, and the biggest hurdle is continuing to find good operators to back, focusing on our due diligence and making sure that the investments that we're making are suitable solid investments. Its lowest cash interest rate charged is 12%; the highest is 16%. Learn More on Jonathan Gilbert Kalikow's trading history. The Kalikows arent exactly wet behind the ears when it comes to real estate lending. Secondly, the suit claims that the Pilevskys altered the treatment of 3 Sutton Place, as a Single Asset Real Estate in the bankruptcy filing by transferring three small cooperative apartments at 504 Merrick Avenue in Lynbrook, N.Y., over to Beninati. Half of the 26 counts were dropped before the trial, and over five days of hearings last November, the Southern District of New Yorks bankruptcy court held a trial regarding the remaining claims. But imagine the combination of near total lack of competition and immense opportunity set. And that's why state-by-state dynamics are so important to us and why we typically only lend to limited license states. Leonard founded the firm and remains as chairman and CEO. For those interested in making money off of cannabis financing, we can offer no alternative. Underwriting these operations and their creditworthiness will be no simple task. When youre looking at this building in the skyline as you come over the 59th Street Bridge, its center stage. He is survived by his wife of 52 years, Elizabeth; his daughter, Amy (Jonathan) Kalikow; his son, David H. (Lauren); a brother, Stanley; and six grandchildren. In return for the apartments, plus $150,000 in cash, the lawsuit alleges that the Pilevskys received an indirect equity interest. Still, I would say that we continue to focus on limited license states and the buildout of new states such as Georgia, which has six licenses awarded that will be a home run state for those six operators. Banco Inbursa was one of the first lenders out of the gate, entering into negotiations for the projects financing and executing a term sheet for a $70 million loan. So why they would want to get into a fight with us literally makes no sense. Its a powerful image.. After all, this started out as a beautiful dream. While we strongly prefer internal management, having the opposite doesnt mean we automatically ignore a company. Track your investments 24 hours a day, around the clock from around the world. So it's critical to use limit orders when transacting such a low liquidity stock. AFC Gammas announcement comes as landlords of cannabis production facilities and dispensaries are outperforming the rest of the retail market during the pandemic. This article was coproduced with Williams Equity Research (WER). Jonathan Kalikow President Gamma Real Estate Jonathan Kalikow serves as the President of Gamma Real Estate, an organization that he founded in 2015 to represent the fourth generation of his family's activity in real estate financing and development. The oldest executive at AFC Gamma is Mr. James F. Velgot, Chief Marketing Officer, who is 61 years old. Invision. Based on her biography, Robyn's career started in 2007. When Beninati defaulted on the $147 million loan from Gamma, the lender foreclosed on the property and later acquired it in a foreclosure auction for $86 million ($98 million including air rights), outbidding Brooklyn investor Isaac Hager. (The city must log and address each complaint as it relates to construction safety. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. But it will take time to build that out, get the market set up and have some of the regulations probably become more favorable. Her educational and professional background are impressive, just unrelated to cannabis, marketing, commercial real estate, or any other area we consider core to AFCs business. LT: Giving back to others is extremely important to us. View Public Record Results ✓ Addresses. JB: Tell me more about the AFC Foundation. We believe Ohio may go recreational soon, but we have enjoyed supporting that medical market. India FM Jaishankar says Soros dangerous, debate needed on democracy, Buffett's Berkshire profit falls on investments, currencies, Bill Gates buys Heineken stake, despite saying he's 'not a big beer drinker', Elon Musk recruits team to develop OpenAI rival - The Information, Musk donated around $1.95 billion in Tesla shares last year, Hedge fund manager Chris Hohn demands Airbus drop Atos deal - letter, Elon Musk's challenge: Stay ahead of the competition, ISS urges Apple shareholders to vote for CEO Tim Cook, other execs' pay packages, Elon Musk accuses media of racism after newspapers drop 'Dilbert' cartoon, French media billionaire Niel fails with bid for TNT television frequence - Arcom. We're very bullish on New Jersey as well. Then theres partner and head of real estate Jonathan Kalikow, and Thomas Geoffroy, CFO. This chart shows Jonathan Gilbert Kalikow's buying and selling at AFC Gamma by year and by quarter. One of our lawyers called up his lawyer and said, Did you guys make an error? They said, No. "As long as God keeps bringing me stories that I can honor him with, to me, it doesn't matter what genre they . Learn More on AFC Gamma's active insiders. A spokesman for the DOB said that between May 1 and Sept. 25, 18 DOB-related 311 complaints were made regarding the property. A zoning war is now underway with Sutton Place City Council officials and the surrounding community, which is fighting to cap the proposed developments height at 260 feet. Since we underwrite loans based on three pillars: cash flows, licenses and real estate, it doesn't make sense for us to focus our efforts in those states. So he understands the layers of complexity involved. Jonathan specializes in catalyst-driven markets with high barriers to entry, which he now applies to Gamma's nationwide opportunistic real estate investment and hard money lending strategies. Between courses, he opined on some of New York Citys most buzzed-about projects: I like the Related [Companies] guys as individuals a lot, I really do, Kalikow said, but I dont really understand Hudson Yards. 1 Practice area Other 100% Licensed for 26 years State NY Status Delinquent Acquired 1996 Updated 11/17/2022 We have not found any instances of professional misconduct for this lawyer. As an institutional lender, we provide financial solutions to the cannabis industry. Join iREIT on Alpha today and get a "front row seat" to our "March Madness" REIT Bracketology series where we break down each property sector to arrive at the "Sweet 16 REITs" to own. But [Beninatis counsel] filed a document that said [3 Sutton Place] is not a single real estate asset. Bauhouse also alleged that Gamma had a different motivation than a traditional lender and seized greater control by refusing to fund the project in accordance with loan documents. 3-min read. So we tend to work with three different buckets of operators. Sale-leasebacks are where the REIT owns the real estate, and a cannabis operator is the tenant and leases it back. We believe its well-positioned to profitably capitalize on the almost completely untapped market of financing cannabis projects. Is this an April Fools Day joke? . And lending is only one feather in their cap: Gamma has also owned and built over 12,000 multifamily units across the U.S.9,000 in the southeastern U.S.and owns 10 million square feet of office space in Manhattan alone. We include exclusive video so our members can get all of the latest and greatest insight and maximize portfolio performance. But some of the ridiculous things he was asking for led us to believe that he would never find a partner, Kalikow said, one example being a $50 million step-up in basis cashed-out to him. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. In its suit against the Pilevskys, Gamma said that the delay allowed groups like the East River Fifties Alliance (ERFA) to organize against its development. Jonathan Kalikow Board of Directors Gamma Real Estate Contact GCP encourages questions, feedback and suggestions from our local stakeholders and visitors alike. Then you have the tier right below the top tier MSOs, where you have some public like Acreage, who is one of our borrowers, and then some private like Nature's Medicine and Justice Grown. The stock saw a nice near 20% gain on the day of the IPO. If I want to buy it, Ill buy it, but I want the borrowers to be successful at the end of the day, he said.). [Beninati] would have made $50 million after paying us off, had he done the sale, Kalikow said. Just last month, AFC Gamma successfully sold 6.25 million shares of common stock at $19 per share. Kalikow has been approached a half-dozen times by potential buyers, he said. Last but not least then, we have Jodi Hanson Bond, whos been serving as a corporate director at Fifth Street since March 2017. Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 10,000 investors around the world. LT: From January 1, 2020, through December 24, 2021, we have reviewed 443 deals and have funded 21 loans. So he understands the layers of complexity involved. RT: I believe our challenge hurdle is always being stewards of capital. Now, even Taiwan's own foreign minister is saying that China is on the cusp of a full scale invasion. We don't just want to be there for the company's first financing. Additionally, I believe on a macro-level, that by providing capital to an industry that many other companies cant or wont lend to, we are bolstering credibility and legitimacy to the industry, setting it up for success well before legalization. What long-term goals do you have planned for the Foundation? The loan maturity date of Jan. 19, 2016, arrived and Bauhouse Group hadnt repaid any amounts under the loan agreements, according to court filings. Len Tannenbaum: When I was 27, I founded Fifth Street, a finance company specializing in raising funds from private investors and investing in middle-market companies. We have 16 borrowers in 17 states, and what we look for are companies that we can grow with over the long term. Information is often lacking there, and one has to dig very deep to uncover the full picture. Somebody in the neighborhood [said to me], Did you know there is going to be a tower? The councilman said he simply brought forth community concerns. We really like the state of Ohio as the market continues to be ripe for cannabis operators since its a limited license state. This creates a very quick and reliable way to boost its cash flow from about $1.25 per share to $1.50-$1.75 in short order. Jonathan Kalikow NY, age 52, female. Paul was shot in the back of the head On the other hand, we also have other vehicles that don't necessarily need real estate as collateral. Author's note: Brad Thomas is a Wall Street writer, which means he's not always right with his predictions or recommendations. Investors could realistically see a double or triple on their principal while earning a 6%-9% cash yield. Moreover, he has valuable experience in marketing and consulting that will likely benefit AFC. We understood [Beninatis] shortcomings but we saw a lot of embedded value, Kalikow said. I'd classify two of the seven as truly independent. There's no perfect solution to this conundrum except to avoid externally managed companies. Why Sharing Weed Decreased During The Covid-19 Pandemic, Fizzy Drink Passion Fuels Zle Cannabis-Infused Craft Beverages, Californias Cannabis Sales Declined In 2022, The First Time Since Legalization, Still Waiting For The SAFE Banking Act? Our bid out of bankruptcy [for 3 Sutton] was $86 million, so thats a $100 million crystallized loss. Has the Foundation made any headway this year to support local communities? Mr. Kalikow is also Member of New York State Bar Association and Director & Head-Real Estate at. Learn More on Jonathan Gilbert Kalikow's age. We offer our clients our expertise in understanding unique industry issues, the flexibility to customize financing solutions to each transaction and deep relationships with cannabis-focused investors and industry experts. The charities we evaluate are focused on causes that are important to our borrowers. If you can't find at least a few really good and bad aspects of a new company especially in a new and controversial industry, you probably aren't looking hard enough. Phone (212) 883-2420 Email General info@gcpbid.org Email Press press@gcpbid.org Contact Jonathan + Leaflet Gamma Real Estate 101 Park Ave New York, NY, 10178-0002 Cost Disclosure: I am/we are long BXMT, ABR, BRMK, LADR. Grace Prize for Most Inspiring Performance for TV, Movieguide. Gamma has originated billions of dollars of loans on hundreds of properties over the past half-century. RT: Two types of financing are available to cannabis operators. These comparisons contain one major weakness: AFCG has no leverage. Jonathan specializes in catalyst-driven markets with high barriers to entry, which he now applies to Gamma's nationwide opportunistic real estate investment and hard money lending strategies. Kalikow said that his team explained to Beninati that in almost no other scenario would he cash out for $50 million. JB: Can you provide an overview of your investment portfolio and explain what types of companies AFC Gamma tends to work with? Actor. The third tier is smaller operators. We have found though, that REIT loans give our clients the most flexibility, and we are able to finance more companies this way. One day later, Gamma sent Bauhouse notices of maturity defaults as well as a notice that it would conduct a foreclosure sale of the collateral the following month. I offered them options such as using their air rights in other parts of the city, Kallos added. Employment Details. A. The hurdles that you overcome as any growing company is the need for additional talent as you scale. Erykah Badu Talks Cannabis Line That Badu With Cookies, NCAA Basketball Odds 2023: West Coast, Sun Belt, Horizon, MVC Tip Off Conference Tournaments, Puff Puff Pass-Ing Covid? Are there any particular markets or segments that you two are excited about and why? With license value being a component of our underwriting, we tend to focus on limited license states such as New Jersey, Florida, Pennsylvania, Ohio, to name a few. Moving down the line, Tomer Tzur appears to be truly independent. Since we aim to find and fund strong deals in everyone's best interestthose of our investors, our borrowers, and our own our stringent loan-selection process means that most potential borrowers don't make it past our review process. Performing as Jesus in The Chosen. Overnight on Wall Street is daytime in Asia. Current address 215 E 68th St #2M, NY, NY 10065 $3,040: B. Understanding the new regulations regarding hemp licenses converting to cannabis licenses is essential, but we believe the states licenses are extremely valuable. Simply put, its legally owed previously paid incentive fees to the external manager if adjusted capital isn't at least 7% higher than the end of the previous fiscal year. Does AFC see lending opportunities in the California market, or do you typically shy away from the Golden State and facilitate deals in limited licensed states? By January 2016, the ERFAbacked by Kallos and Manhattan Borough President Gale Brewer as well as State Senator Liz Krueger and Councilman Dan Garodnickhad formed and filed its first rezoning application with the Department of City Planning, looking to cap the height of the building and also secure a section of the residential development for affordable housing units. FILE - Jonathan Majors poses for a portrait to promote the film "Magazine Dreams" at the Latinx House during the Sundance Film Festival on Friday, Jan. 20, 2023, in Park City, Utah.