Credit crisis fails to sideline Hudson as company celebrates record $700M year.While the ongoing credit crises in the financial industry has sidelined many real estate lenders, Hudson Realty Capital LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (HRC HRC Human Rights Campaign HRC Human Rights Council (UN) HRC Human Rights Commission HRC Hard Rock Cafe HRC Hillary Rodham Clinton (democratic senator/presidential candidate; former first lady) ), completed a record year, closing approximately $700 million of debt and equity transactions, a 58% increase over 2006. During 2007, HRC also closed its fourth real estate opportunity fund--the largest to date for the company--with $350 million of equity commitments. HRC currently has more than $1.2 billion of assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. and since its formation in 2002, the company has closed more than $2 billion in debt and equity transactions. In addition, the New York-based real estate fund manager expanded its internal organization during the past year. In June, HRC acquired Questor, LLC of Portland, Maine, a real estate consulting firm providing due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and underwriting services to the real estate industry. Shortly thereafter, HRC opened a new office in Miami to focus on its increasing business in the southeast region. In addition, HRC both relocated and expanded its New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of office to accommodate a number of new team members. "Although the last half of 2007 was a difficult one for the real estate industry, HRC has been able to seize opportunities created by the lack of liquidity in the marketplace. This was especially true with regard to borrowers seeking bridge and mezzanine financing Mezzanine Financing A hybrid of debt and equity financing. Mezzanine financing is typically used to finance the expansion of existing companies, and it is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the as a result of traditional sources of capital pulling back. In addition we have been active in purchasing subordinate debt positions from conventional lenders; whereas, until the credit crises, we were priced out of this market," said Spencer Garfield, managing director of HRC, who is responsible for new loan originations and business development nationwide. The firm attributes its success to several factors, including its niche positioning as a middle market real estate investor A real estate investor is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. . By concentrating on investments in the $5 million to $50 million range, the company has tapped into a market underserved by traditional lenders and investors. Further, HRC is a balance sheet lender and is not reliant upon heavy leverage thus increasing its competitive advantage in this environment. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion