Venturi Capital Advisors engaged on First Fund for Bloomfield Capital Partners, LLC - High Yield Bridge Loan Debt Platform aims to fill market gap.
21 September 2009 (New York, NY) – Venturi Capital Advisors has been exclusively engaged by Bloomfield Capital Partners, LLC to identify investors for its first institutional fund. The assignment was announced by Paul N. Arena, President of Venturi Capital Advisors, Inc.
The vehicle, Bloomfield Institutional Opportunity Fund I (the “Fund”), will originate high-yield bridge loans backed by multi-family real estate. The Fund aims to fill the gap left by the many lending institutions who have either exited the business entirely, or are on the sidelines. Based in Birmingham, Michigan, Bloomfield’s broader mandate is to acquire and manage a diverse portfolio of commercial mortgage loans and deeds of trust backed by multi-family properties. The Fund’s manager, Bloomfield Capital Partners, LLC (“Manager”), has extensive experience in managing real estate financing investment vehicles tailored to current market opportunities.
“The strength of this strategy,” commented Arena, “is that for every loan Bloomfield makes, there is a clear and present takeout from either Fannie Mae, Freddie Mac or HUD agencies.” “The availability of permanent financing in the multi-family space,” continued Arena, “serves to lower the overall risk profile of the loans that Bloomfield will originate, and provides a degree of safety unavailable in other property segments at this point in time.” “It certainly helps that the collateral represents a segment of the market projected to perform best over this coming phase of the macroeconomic recovery,” Arena said.
The Bloomfield team have distinguished themselves as leaders in providing innovative commercial real estate capital to the industry. “Representing several decades of combined real estate lending, development and operating know-how,” said Arena, “for the last several years, this lending team has emerged as one of the most active in the midwestern region, having originated a series of loans ranging from senior, B-note and mezzanine facilities for ground-up developments through condo conversions.” “This team has done a tremendous job of getting in front of currently active multi-family investors and owners,” continued Arena, “and combined with the current paucity of transitional debt capital for deals and moderating pricing for multi-family assets, Bloomfield has built a significant pipeline of new business and are filling a critical void in the market, originating loans at very attractive spreads.”
Bloomfield is run by co-managing principals Nicholas S. Coburn and Erik S. Stamell. Both managers ran a predecessor fund, JADDA Institutional Opportunity Fund, until 2008, when they formed Bloomfield Capital Partners. Up until their departure, that vehicle generated a fund-level IRR of more than 25%. Together, Coburn and Stamell have completed more than USD 200 million of transactions similar to those the Fund will pursue. Within the Fund, each of the Principals is responsible for a critical element of Bloomfield’s investment strategy, including deal sourcing, loan review and underwriting, monitoring and servicing of the current portfolio and compliance, administration and reporting.
Bloomfield has quickly earned a reputation for both professional, efficient underwriting, and closing transactions with certainty. The group has thus has attracted a number of “name brand” private equity players and hedge funds, such as D.E. Shaw, with whom Bloomfield have teamed up on select transactions.
Working with Mr. Arena on the assignment is Edward C. Yu, Managing Director at Venturi Capital Advisors.
“Given the improving demographics and prospects for the multi-family sector, and given the fact that multi-family is one of the only property sectors where there is still capital market support,” added Yu, “the Bloomfield strategy is anticipated to generate strong returns for investors, and we expect that it should meet with a positive response in the market.”
The fundraising effort is expected to attract a number of institutional LPs, as well as a number of endowments and family offices, both domestic and offshore, seeking the returns and relative safety that the Bloomfield strategy offers. A Detroit-area plan sponsor has, in fact, already committed approximately USD 10 million to the Fund, with a second expected to follow.
About Venturi Capital Advisors, Inc.
Venturi Capital Advisors, Inc. is an industry leading real estate investment banking firm transacting in the private equity real estate space. Venturi provides the full range of placement services for emerging through mid-size investment managers and real estate owner/operators. The firm has built a successful track record raising capital for real estate investment funds and direct private placements. Orchestrating these transactions, consisting of both one-off, single-asset and portfolio financings, as well as entity-level placements, the firm serves a loyal roster of real estate operators and institutional managers seeking real estate equity and structured finance advisory services delivered creatively, efficiently, and with professionalism. Venturi develops the optimal structured finance solution for its client’s ever-changing real estate capital needs. To learn more about Venturi Capital Advisors, please visit www.venturicapitaladvisors.com
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Contact
Paul N. Arena
President
Chrysler Building
132 East 43rd Street, Suite 311
New York, NY 10017
Tel 347.599.0187
Cell 917.306.2917
GSM Cell 917.496.7346
E-Mail parena@venturicapitaladvisors.com
Web Site venturicapitaladvisors.com