AFC Gamma, a West Palm Beach-based real estate investment trust, now has $120 million in capital on hand to lend to cannabis operators. David Ingles and Yvonne Man bring you the latest news and analysis to get you ready for the trading day. . I am not receiving compensation for it (other than from Seeking Alpha). Prior to co-founding Gamma, Jonathan Kalikow spent 18 years on Wall Street. He is president and founder of Gamma Real Estate, a boutique commercial real estate firm based in New York City. 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. That amounted to total gross proceeds of $118.75 million. We include exclusive video so our members can get all of the latest and greatest insight and maximize portfolio performance. Of course, as in any market, some operators will be successful, but we do not have plans to enter the California market. And that's the point where things start looking quite attractive for AFC. Jonathan Kalikow was born and raised in New York. This unique partnership approach with each of our clients allows us to find solutions to help them expand and grow alongside them. All rights reserved. There are so many great opportunities to put capital to work with good borrowers. A complaint filed Aug. 27 in U.S. Bankruptcy Court charges that New York's Gamma Real Estate, its president, Jonathan Kalikow, and others wrongfully schemed to get control from Thomas of the multi . Jonathan Kalikow Principal of Manager, Head of Real Estate and Class II Director of AFC. And another sits on another one of his company's boards. Youre not winning this one.. It had no debt at that time but did maintain a $40 million line of credit. (Kalikow was insistent that he does not loan to own, even if that turned out to be the case for 3 Sutton Place. [Three Sutton Place] is in a residential neighborhood that we find unique, and it has these really strong water views, Kalikow said about Beninatis plan for a 950-foot tower when it first crossed his desk in 2014. Both are also externally managed but have very long track records and proven management teams. Last December, Gamma filed plans for its own 844-foot, 67-story tower at 3 Sutton Place, for which construction has recently commenced. Originating senior secured loans to companies in the cannabis industry is its primary activity helping to finance land or buildings, equipment, licenses, and "other assets" that classify as colleterial to secure AFC's loans. LT: Throughout my career, I've been fortunate to have significant experience with taking companies public to date, I've taken four companies public, including AFC Gamma. JB: AFC Gamma is notably among a handful of cannabis-related companies listed on the Nasdaq. Jonathan Kalikow President Gamma Real Estate. Practically speaking, the higher the hurdle rate, the lower the fees paid but the greater the incentive for the external manager to take outsized risk. We think its a very unique property, and we havent put it on the market. The hurdle rate or minimum amount of core earnings produced on a percentage basis applicable to the performance fee (otherwise known as the incentive fee or carried interest) paid to the external manager is 2% per quarter. [We told them] were not Beninati: We know what were doing, and were building for New York buyers because this is a New York enclave, Kalikow said. 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. And AFC Gamma was created roughly half a year later in mid-2020. We decided to share a few more details on this analysis than we usually since its a great case study for subscribers to learn from. Opinions expressed by Forbes Contributors are their own. When youre looking at this building in the skyline as you come over the 59th Street Bridge, its center stage. So we want to see: As for the first, AFCs management and investment committee members have approximately 100 years of combined investment management experience. LEWIS J. LIMAN, United States District Judge: OPINION AND ORDER LEWIS J. LIMAN, United States District Judge: This case arises from the financing and development of two parcels of land outside Dallas, Texas, known as Wade Park. But Id love to stay in., Thats not to say there havent been interested suitors. Kalikow, the 47-year-old married father of four girls ages 8, 10, 12 and 17, is the president of Gamma Real Estate and a man of real estate pedigree par excellence. And while its lower than its previous high, it remains roughly 10% higher than its initial $19.0 price. A. In the last twelve months, AFC Gamma insiders bought shares 5 times. 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. AFC Gamma, Inc. originates, structures, underwrites, and invests in senior secured loans, and other types of loans and debt securities for established companies operating in the cannabis industry in states that have legalized medicinal and/or adult use cannabis. Jonathan Kalikow is currently associated with one company, according to public records. in the cannabis industry in states that have legalized medicinal and/or adult use cannabis.". So the portfolio isn't as robust in a rising interest-rate environment. In this case, the fee to fire the external manager is three times the annual base management fee (1.5% of equity) and the annual incentive compensation (variable, but likely 2-6% of equity) based on the trailing 12-month period. The company has so far provided $50 million in financing to five marijuana businesses, including dispensaries, cultivators, processors, and combined operations. Once. The DOB was doing their job. (The city must log and address each complaint as it relates to construction safety. There are parts of this deal that made a lot of sense to us.. Len, who serves as CEO of the AFC Gamma.and previously founded Fifth Street Asset Management, which he eventually sold to Oaktree, also founded LMT Investments, a single family office that is focused on allocating capital across various strategies, including credit via Tannenbaum Strategic Credit Fund, which is a $100M+ fund, equities and real estate. He's spent his entire life here and his family's real estate roots run four generations deep. 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? LT: We have not currently made any loans to operators in California, Washington, Oregon or Oklahoma. [3] [4] He is also a voice artist. Jonathan Kalikow NY, age 52, female. So how is AFC Gamma helping cannabis companies gain access to capital and what do you offer them? Image Source; Jonathan Roumie's Instagram. That's considerably lower than the likes of Blackstone Mortgage Trust and Starwood Property Trust's (STWD) ~8% yields the two commercial mREIT heavyweights. Learn More on Jonathan Gilbert Kalikow's contact information. Mr. Kalikow specializes in what he terms "catalyst-driven markets with high barriers to entry," a strategy that he applies to Gamma's debt . Background Report for Jonathan Kalikow. Jonathan Gilbert Kalikow has not been actively trading shares of AFC Gamma during the past quarter. Lead director Thomas Harrison isnt independent and was on Fifth Streets board as well. 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. What is the teams strategy for building a diverse portfolio? Cannabis is a local business, where the operators become entrenched in the local communities providing jobs and revenue to the states. This building [101 Park Avenue] is next to Grand Central [Terminal], whereas it could take you another 40 minutes to get over there. Current address 215 E 68th St #2M, NY, NY 10065 $3,040: B. They deposed the architects who attended the meeting, who didnt remember whether we were there or not, but said that if we were there, we said nothing. Please disable your ad-blocker and refresh. Is this an April Fools Day joke? . 101 Park Avenue, 11th fl. Underwriting these operations and their creditworthiness will be no simple task. Enter your email address below to get our daily insider buying and selling report. Learn More on Jonathan Gilbert Kalikow's age. There were so many little fights during this war. The first type is known as a sale-leaseback, which was around before loans were available. If the United States goes to war with another nuclear armed superpower, this could have a devastating impact on your retirement portfolio. JB: AFC Gamma is currently located in Florida, the largest medical market in the U.S. are there any other medical markets or opportunities that seem like attractive targets? And this offer includes a 2-Week FREE TRIAL plus my FREE book. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Termination fees are another point of contention. (Kalikow was insistent that he does. This chart shows Jonathan Gilbert Kalikow's buying and selling at AFC Gamma by year and by quarter. JONATHAN KALIKOW et al, Defendants. Jonathan Kalikow Partner, Head of Real-Estate BIO Brett Kaufman Chief Financial Officer and Treasurer BIO Gabe Katz Chief Legal Officer BIO James Velgot Chief Marketing Officer BIO Christopher Gioia Managing Director, Head of Origination BIO Brandon Hetzel Executive VP BIO Edwin Gomez Director BIO Carly Hooker Director BIO Professionals We tend to focus on deals in limited license states and also deals that have real estate as collateral. Our coverage spectrum includes equity REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and we recently added SPACs to the lineup. Gammas lawsuit firstly alleges that Philip Pilevsky caused Prime Alliance Group (of which he is president) to lend Beninati $50,000 to retain a law firm, LaMonica, Herbst & Maniscalco, to file a bankruptcy petition which then prevented Gamma from executing the foreclosure sale. Learn More about insider trades at AFC Gamma. As of the date of the S-11 filing associated with the IPO, AFCG had a sizeable $5.5 billion loan pipeline. The stock saw a nice near 20% gain on the day of the IPO. Learn More on Jonathan Gilbert Kalikow's trading history. AFC Gamma's insider roster includes Jodi Bond (Director), Jonathan Kalikow (Insider), Leonard Tannenbaum (CEO), and Robyn Tannenbaum (Director). When you're lending to a Verano or an Acreage, you're not just lending to one state; you're lending to multiple states. They said, We dont care, its too high. . We want to be there for the company's second and third financing. Get started New York City Marriages, 1950-2017. Overnight on Wall Street is daytime in Asia. LT: Exactly right, cannabis companies, no matter the size, traditionally lack the lending opportunities that other enterprises have available, and that's where AFC Gamma comes in. We were at the meeting doing our due diligence and checking on the project like any good lender would. A New Cannabis Dating Service Might Solve Your Financial Needs, Golf Odds, Picks And Props: 2023 Arnold Palmer Invitational Betting Preview, Most GOP Voters Support Weed Legalization, Says New Poll, Advanced Flower Capital Gamma (AFC Gamma). Kalikow interpreted that as a threat and that Kallos was going to do something with these tenants to hurt us, he said. [In 2015], Beninati goes and describes the enormity of the project, which pisses off all the neighbors, who then raise money for their councilman [Ben Kallos], who then starts a rezoning proposal, Kalikow said. Jonathan Kalikow 's Gamma Real Estate allegedly used an $83 million real estate loan and fraud to seize a massive real estate project near Dallas worth more than $500 million, according to a lawsuit filed by the ousted developer.. Stanley Thomas, who led the Wade Park Land Holdings mixed-use development, says Kalikow manipulated him for about two years before laying claim to the complex . Are there any particular markets or segments that you two are excited about and why? Three to four months before the second loan matured, Beninati told Kalikow he had three potential buyers lined up for 3 Sutton Place with one lead candidate. He agreesbut then goes radio silent.. It actually took us some time to figure out what happened.). Theres generally no 10-Qs or 10-Ks to analyze. Disclosure: I am/we are long BXMT, ABR, BRMK, LADR. Cannabis is a rapidly growing industry. And, with few exceptions, companies involved are heavily excluded from the financial system. Portfolio Builder / Fund Intersect. In many ways, its approach is in between that of a Business Development Company and mREIT. There, he invested across industries and asset classes on behalf of institutions, family offices, and wealthy individuals as a proprietary trader at Morgan Stanley and then as a hedge fund portfolio manager and trader at various funds and firms. Roumie, too, is deserving of all the love and encouragement he is receiving. The only count left was criminal usury, for which the court ruled that the building loan had a rate higher than the New York statute. Its a pain. The board of directors, meanwhile is led by Leonard M. Tannenbaum. Investors could realistically see a double or triple on their principal while earning a 6%-9% cash yield. We like the state of Arizona. Companies like ourselves are known as commercial mortgage REITs which means we simply take a lien on the real estate as a lender. But [Beninatis counsel] filed a document that said [3 Sutton Place] is, Armada Merges With Data Analytics Firm Arialago to Target REIT Research. 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. They're single or two-state operators, and we're typically coming in to help them build out licenses that they want or help them expand within that state. 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. Prior to co-founding Gamma, Jonathan Kalikow spent 18 years on Wall Street. Marker Address Rent ? Were prepared to build it. 8. This is impressive since the company didn't exist a year ago. Because of this, our expectations surrounding AFCG's pipeline and margins directly correlate with estimates of its fair value. Learn More on Jonathan Gilbert Kalikow's age. While not necessarily unusual, this potentially augments Leonard's already powerful decision-making ability even further. Not until the grandfather issue is resolvedone way around a zoning change would be to be grandfathered in to previous zoning lawsIm happy to take a profit because there is some deal fatigue. AFC Gamma Inc.'s story has two major milestones, the first of which occurred on August 17, 2020. Sale-leasebacks are where the REIT owns the real estate, and a cannabis operator is the tenant and leases it back. Each loan is unique and tailored specifically to meet the needs of our borrowers. Bauhouse Group likely will not see any proceeds from sale of controversial East Side site Following the completion of the transaction, the director now directly owns 97,500 shares of the company's stock, valued at $1,522,950. 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As you come over the 59th Street Bridge, its too high environment...

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