This chart shows Jonathan Gilbert Kalikow's buying and selling at AFC Gamma by year and by quarter. For now, Kalikows eyes are firmly on the finish line. One early loan that we funded was with a company called OnePlant, run by Brady Cobb. The most investor-friendly board of directors in the world will still hesitate to fire a terribly performing external manager if its too costly. And that's the point where things start looking quite attractive for AFC. But before getting there, its worth examining the origins. China Equity Emerging Markets Gold and Silver International Dividend US Dividend US Energy US High Dividend US Large Cap Growth US Large Cap Value US Mid Cap Growth US Mid Cap Value US REIT US Small Cap Growth US Small Cap Value US Sustainable (ESG) JB: AFC Gamma is notably among a handful of cannabis-related companies listed on the Nasdaq. 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? 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. So he understands the layers of complexity involved. The only way to advance the communities that our borrowers serve is by ensuring all residents have the opportunity to succeed. 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. 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. JB: Cannabis companies of all sizes have been traditionally starved of access to capital most mom-and-pop and larger established businesses like MSOs cannot walk into a bank or financial institution and receive a loan. So the emergence of an mREIT like AFC Gamma (NASDAQ:AFCG) is invaluable. Were prepared to build it. JB: Can you provide an overview of your investment portfolio and explain what types of companies AFC Gamma tends to work with? (Podcast). Learn More on Jonathan Gilbert Kalikow's age. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. Pilevsky says, We know how to deal with lenders, well handle this for you. So they try to get an injunction to stop the foreclosure.. The company seeks to work with operators, ideally in limited license states. Known for. Kalikow has reason to be angry. Company/Fund Name: Gamma Real Estate Capital Management, Inc. While the community groups argue that the zoning law would protect the area from super-talls, Kalikow maintains it does nothing but protect the views of wealthy residents at The Sovereign, a 485-foot residential neighboring co-op. 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 have it in our [loan] documents that if you do anything to fight a foreclosure youre fully personally liable, but if you turn over the deed, youre not personally liable, Kalikow said. We have asked all our borrowers to provide us with two to three charities they are passionate about, and we are currently evaluating our first few charities and going through the vetting process. 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. Marijuana product sales remained steady, and even saw gains in some states, including in Florida. Leonard M. Tannenbaum is the CEO and founder, with the investment committee being composed of Jonathan Kalikow and Robyn Tannenbaum Leonards wife as of 2019 when they made their IPO filing. The third tier is smaller operators. (The city must log and address each complaint as it relates to construction safety. 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. As in, now youve fucked with the wrong person.. 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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. They said, We dont care, its too high. . That's considerably lower than the likes of Blackstone Mortgage Trust and Starwood Property Trust's (STWD) ~8% yields the two commercial mREIT heavyweights. Grace Prize for Most Inspiring Performance for TV, Movieguide. Performing as Jesus in The Chosen. In AFC's case, there is an incentive compensation clawback provision in the management agreement. This is clearly an extremely speculative play. We tend to lend to operators in regulatory-friendly states, such as: Ohio, Pennsylvania, New York, New Jersey, Maryland, Massachusetts, Arizona, New Mexico, Missouri, Illinois, Michigan, and Nevada. 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. Prior to co-founding Gamma Real Estate, Jonathan Kalikow spent 18 years on Wall Street investing across industries and asset classes as a proprietary trader at Morgan Stanley and then as a hedge fund trader and portfolio manager. And while its lower than its previous high, it remains roughly 10% higher than its initial $19.0 price. Our loan, plus the interestwell call it $185 million. Jonathan Kalikow is currently associated with one company, according to public records. New York City Council District 5 representative Ben Kallos first discovered news of Bauhouses planned development from a local resident while attending an Easter egg hunt in April 2015. We believe even more institutions will enter the industry over time, given the growth the industry is experiencing. As of February 15, theyve also reviewed 273 loans, 10 of which were funded; entered into non-binding term sheets for five more; began a syndication commitment letter for another; and were in the process of evaluating 23. Then theres partner and head of real estate Jonathan Kalikow, and Thomas Geoffroy, CFO. Also, this article is free: written and distributed only to assist in research while providing a forum for second-level thinking. The complaint alleges that the three of them, as strangers to the project, caused Beninati to breach contractual obligations following his maturity defaults and helped him file for bankruptcy in a scheme to benefit themselves and obtain an ownership interest in [3 Sutton Place]., Were suing Pilevsky for over $100 million, Kalikow said. But it will take time to build that out, get the market set up and have some of the regulations probably become more favorable. So why they would want to get into a fight with us literally makes no sense. It yields 8.3% despite more than doubling in price in the past 12 months from $6.67 to $16.16. Gamma has originated billions of dollars of loans on hundreds of properties over the past half-century. Includes Age, Location, Address History for Jonathan Kalikow; Arrest, Criminal, & Driving Records . Given its especially profitable, high-interest rate loans even somewhat expensive leverage will create a spread of at least 500 basis points and potentially 800-900. First of all, we take a unique partnership approach. Add in the inherent complexity of mortgage REITs and the ever-changing nature of cannabis legislation and it's a worthy challenge. RT: Given our focus on limited license states, our two favorite medical markets, aside from Florida, currently are Ohio and Pennsylvania. Robert Levy, another independent director, has substantial experience in retail and multifamily commercial real estate. Pennsylvania Senators also discussed the potential for recreational for the first time at a GOP-led committee hearing in February. On the other hand, we also have other vehicles that don't necessarily need real estate as collateral. Our platform includes a publicly-traded company, a private BDC and a network of Family Offices that allows us capacity to support portfolio companies over long periods of time. Address: 101 Park Avenue, Suite 2602, New York, NY, 10178, United States Phone: 212-922-0222 Fax: 212-922-2121 Website: 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. We provide term loans, draw facilities, and construction loans. Total sales of medical marijuana in Florida blossomed, increasing 56 percent between March and May, compared to the same period in 2019, the Wall Street Journal reported, citing data from the Florida Office of Medical Marijuana Use. Get notified the next time Jonathan Gilbert Kalikow buys or sells AFC Gamma stock. Our bid out of bankruptcy [for 3 Sutton] was $86 million, so thats a $100 million crystallized loss. Insiders at AFC Gamma own 28.0% of the company. Their experience seems at least sufficient for their roles. Markets never sleep, and neither does Bloomberg. In return for the apartments, plus $150,000 in cash, the lawsuit alleges that the Pilevskys received an indirect equity interest. The firm lends on real estate nationwide, owns a portfolio of . Not to mention its proximity to the FDR Drive, to Connecticut, to the airports and to the Hamptons. Its a powerful image.. 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Investors could realistically see a double or triple on their principal while earning a 6%-9% cash yield. This April, CO reported that Gamma had spent the previous few months demolishing the three tenement buildings that had previously occupied the site. 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. And, with few exceptions, companies involved are heavily excluded from the financial system. What is the teams strategy for building a diverse portfolio? 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. The Ohio medical program patient community has grown 87% from 2020 to 2021, and the Pennsylvania medical program patient community has grown 313% from 2020 to 2021. This broader mandate means we must have greater confidence in its underwriting standards and practices and in its management. The companies were formed over a five year period with the most recent being incorporated three years ago in February of 2019. [3] [4] He is also a voice artist. Somebody in the neighborhood [said to me], Did you know there is going to be a tower? In many ways, its approach is in between that of a Business Development Company and mREIT. Its a pain. The concept of AFC Gamma all started on the back of a napkin, and we quickly realized that to be successful, we needed another partner. The company was purchased by Cresco for $213 million a year later after we financed them. Invision. At the end of trial, one of their defenses was they never read the documents that they signed.. So the portfolio isn't as robust in a rising interest-rate environment. His estimated net worth is $600000. There's no perfect solution to this conundrum except to avoid externally managed companies. Actor and former White House aide Kal Penn explores solutions to the climate crisis with a dose of humor and optimism. This net worth approximation does not reflect any other assets that Mr. Kalikow may own. On Feb. 17, 2016, Bauhouse filed a suit seeking a preliminary injunction to stop the foreclosure sale. 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. It has committed to lending another $30 million to existing borrowers and to two new borrowers, according to the release. 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. Three of the companies are still active while the remaining one is now listed as inactive. Still, Gamma Real Estate nevertheless found itself embroiled in a real estate battle and forced into the spotlight after it financed Joseph Beninatis Bauhouse Groups 87-story residential development at 3 Sutton Place between East 57th and East 58th Streets. Learn More on Jonathan Gilbert Kalikow's contact information. The hurdles that you overcome as any growing company is the need for additional talent as you scale. Chart Data in Insider Trading History Table. We don't just want to be there for the company's first financing. He also holds a JD from Fordham University School of Law and is a member of the New York State Bar Association. But if admittedly a big if its portfolio grows to a couple billion in the next few years while enjoying current economic conditions. LT: We have not currently made any loans to operators in California, Washington, Oregon or Oklahoma. Underwriting these operations and their creditworthiness will be no simple task. What long-term goals do you have planned for the Foundation? Write to Katherine Kallergis at kk@therealdeal.com. But the good news is, if China invades Taiwan, there is a way to protect yourself. I guess its hurt a little bit in terms of [business driven by] word of mouth, but because we have a 50-year history of doing this, were [easily vetted]. One of his reasons [for believing this] was that we had attended a meeting at the architects office, and my father sat at the head of the table, Kalikow recalled. But [Beninatis counsel] filed a document that said [3 Sutton Place] is, Armada Merges With Data Analytics Firm Arialago to Target REIT Research. But based on 2020 data incorporated in SEC filings and assuming a 100% payout ratio. I'd classify two of the seven as truly independent. This is industry standard and in line with the likes of Blackstone Mortgage Trust (BXMT). Are there specific deals the team tends to focus on more? And, then, it got even stickier: Beninati declared bankruptcy. Jonathan Kalikow. I offered them options such as using their air rights in other parts of the city, Kallos added. I believe in completely disproportionate retaliation, Jonathan Kalikow told Commercial Observer, like Count of Monte Cristo, but to the 10th power. A spokesman for the DOB said that between May 1 and Sept. 25, 18 DOB-related 311 complaints were made regarding the property. 5. The stock saw a nice near 20% gain on the day of the IPO. This building [101 Park Avenue] is next to Grand Central [Terminal], whereas it could take you another 40 minutes to get over there. 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. On Feb. 23 the motion was denied on the merits that the borrowers would not be irreparably harmed by the sale and that the equities favored allowing Gamma to enforce its contractual rights. 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. In customary fashion, underwriters were granted the option to purchase another 937,000 shares at the IPO price, less underwriting discounts and commissions. Actor. What we thinkand again, we dont knowis that Pilevsky believed that we had used leverage like everybody else does on [this type of] loan.. Both markets have strong medical programs with a robust addressable market and population of patients. 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