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“We are excited to support this transformative project that will bring much-needed housing to East Hartford,” Seth Weissman, Founder and Managing Partner of Urban Standard Capital. Thank you Commercial Observer's Andrew Coen for covering USC’s funding of $60,000,000 construction financing to a joint venture between Jasko Development, LLC and Zelman Real Estate.
Thank you to Commercial Observer's Andrew Coen for covering USC’s recent $77M construction financing to Pro-H Development for a condominium tower in the NoMad area of Manhattan.
Expanded Joint Venture Targets $1 Billion in Loan Volume
The New York-based manager is targeting $1 billion of additional loan originations as part of the expanded partnership. “We build relationships with borrowers that are active, good at execution, trustworthy and honest, and we do a lot of deals programmatically with our borrowers,” - Seth Weissman.
The shifts have led to a lucrative symbiosis between alternative lenders and the larger commercial banks.
Key discussion points include: Today’s risk/return dynamics favor real estate private credit, advantages of USC’s experience as owner operators and developers, example of “safely landing the plane” with a troubled loan in turbulent times, and why private credit will continue to gain market share from traditional lenders.
"Despite headwinds in the broader office market, we continue to identify compelling contrarian investment opportunities focusing on Class A assets in prime locations with top-tier operating partners” - Seth Weissman
Commercial Observer featured Urban Standard Capital's $23MM financing package for the acquisition of a prime Tribeca development site. Our financing included a $19MM senior loan and $4MM of preferred equity.
In this podcast episode, Seth discusses: Lessons from the Unexpected: You won’t believe what happened with our first borrower; Probable vs. Possible: How equity DNA helps us distinguish between real and perceived risk; Right Sizing: How we approach risk and getting paid back; Creative Capital Solutions: We excel at deals requiring flexibility and structuring; Luxury Lending: Why we’re finding compelling investment opportunities in this single-family niche, and more!
Seth Weissman on the 827 Sterling Place project: “We are excited to contribute to addressing the housing needs of the Crown Heights neighborhood and playing a part in alleviating the workforce housing crisis in America. Our focus is on investing in safe, clean, and affordable housing and empowering residents with opportunities for prosperity.”
"One of the most exciting and rewarding aspects of real estate private equity is the ability to drive positive change through the deployment of capital. By creating jobs, building safe housing, and driving economic growth, private equity real estate investments can have a transformative impact. Our recent loan in Tacoma is a clear example of this power. Through strategic investment, we were able to support a project that will have a positive impact on the community for years to come." - Seth Weissman
“While the market for construction financing is certainly challenged, we remain committed to our borrowers and their projects,” said Urban Standard Capital’s Robert Levine. “In October, we closed over $100 million of construction loans.” “We have seen our borrowers capitalizing on the market dislocations to acquire prime properties at a discount.” “227 W 19th is another example of leaning in during uncertain times.”
Kingsdel Real Estate through the entity 447 Fenimore 2022 LLC as borrower signed a new construction loan with lender Urban Standard Capital through the entity Usc 447 Fenimore 2 LLC valued at $34 million for two properties including 625 New York Avenue in East Flatbush, Brooklyn and 447 Fenimore Street in Prospect Lefferts Gardens, Brooklyn.
Urban Standard Capital has provided $34 million in construction financing for a two-building multifamily project in Brooklyn’s Prospect Lefferts Gardens neighborhood for Kingsdel Real Estate, a Brooklyn development firm.
Connect CRE highlights the $38.5M Construction Loan in Crown Heights.
Crain's New York Business features the $38.5M Construction Loan for 827 Sterling Pl in their Deals of the Day
Haussmann Development has secured $38.5 million in construction financing to build a 76-unit rental property on the site of a demolished parking lot in Crown Heights, Brooklyn. “A big part of our business is serving as a talent manager and identifying who is up and coming, who is active, and who shares our passion and commitment to New York City housing,” Seth Weissman told CO.
The Real Deal included Urban Standard Capital in their "Red October" feature on the upcoming wall of maturities this fall highlighting groups active in the rescue capital and gap financing space. "Some owners who borrowed at 3 or 4 percent interest in 2019, for example, were given more funds than they might qualify for today, Weissman said.
The Urban Standard Capital founder pivoted (very) early from architecture to development, and then to finance. "I don’t want to go to work every day and have my success built on someone’s failure. Everyone here feels the same way. We’re cheerleaders to our partners, and that’s a different approach than we see in a lot of the middle-market space.”
High borrowing costs have put many buyers on the sidelines; lenders are here to help. "Buyers don’t want to borrow at 6 percent,” said Seth Weissman, founder of Urban Standard Capital, inventory lender at 199 Chrystie Street, a 14-unit project on the Lower East Side. Still, Weissman believes developers can move product: “If buyers take advantage of concessions and can refinance in 18 to 24 months, they will have bought at a discount.”
“It definitely leaves a gap in the market that is a net negative,” Weissman said. “To lose a major player in those spaces will just reduce the number of options that are available.” Weissman added, however, that he expects alternative lending in the single-family and luxury construction divisions to pick up now that First Republic has gone under.
The joint venture between Vault Development Partners and TLM Equities has secured a $20.1 million debt package for its planned condominium building on Manhattan’s Lower East Side. “While there are certainly headwinds as it relates to interest rates and inflation, we believe that there is significant downside protection in lending against the highest-quality assets developed by best-in-class sponsors,” Robert Levine said in a statement. “In down markets, you see a flight to quality time and time again."
"Weissman said alternative lenders like his firm are increasingly seen as more reliable partners than a regional banking system that has experienced multiple failures, mergers, runs and federally coordinated consolidations in three short weeks — and a near fatal collapse 15 years ago."
A new generation of "preferred equity" aims to help developers and owners challenged by higher interest rates. Seth Weissman at Urban Standard Capital is on a mission to fix broken balance sheets, offering preferred equity to multifamily assets with upcoming debt maturities.
"These failures will likely accelerate the prevalence of alternative lenders in commercial real estate deals as banks step even further away from risky deals", said Seth Weissman, the president of real estate private equity fund Urban Standard Capital.
"Seth Weissman, managing partner at Urban Standard Capital, said he has fielded six phone calls since SVP’s collapse Friday from borrowers with loans scheduled to close in the next 30 to 60 days are considering private lenders as an alternative path. He said in a couple cases sponsors were having trouble getting clear answers from loan officers at regional banks about where their deals stand, which prompted them to inquire with private lenders about a plan B."
“Seth Weissman, managing partner at the real estate firm Urban Standard Capital, said that as the SVB and Signature news broke, he received a number of inquiries from worried families. "They want to know where we keep our deposits and our exposure," he said.”“Weissman's firm made an effort to be "proactive about communicating" and sent messages explaining how Urban Standard "purposely manages our accounts across multiple banks" to avoid ever having liquidity issues, he said. The real estate industry has generally been less concerned than the tech space about whether their funds are secure, Weissman said.”
Urban Standard Capital started a new venture to deploy $100 million in gap financing, including senior stretch financing, mezzanine, and preferred equity. Seth Weissman said he is increasingly noticing financing gaps between 20 to 30 percent in capital stacks because of rising interest rates.
“There are special things happening in the South Florida market in terms of tail winds and the number of businesses coming down. On Murray Road, it will be high-end, single-family homes on a really amazing street that is a lot like Palm Beach." - Robert Levine
"Rising interest rates have affected everyone in the real estate industry in 2022. In this uncertain environment many banks have scaled back their lending capabilities. As a private lender we are uniquely positioned to capture this market where traditional financing sources have retreated. I believe that in 2023, we will continue to see the trend of non-bank lenders financing real estate projects." - Robert Levine for NYREJ
“We focus on properties with unique attributes that are defensible in a down market,” said Seth Weissman. “Casteel Creek is a really special property, not only in terms of its location but also the quality of the construction and the build-out.”
“USC continues its bullish outlook on the South Florida market,” said USC’s Founder and President Seth Weissman. “We are looking to double our Florida investments to $200 million over the next year. Low taxes and a pro-growth political climate continue to draw top talent from across the country.”
Seth Weissman joined the Weekly Beat newsletter for an interview to discuss his entrepreneurial journey, the alternative lending space, and the harsh reality of the New York City condo market.
USC delivered a $4.05 million acquisition and construction loan for a three-story residential building at 522 State Street to be turned into condos in the Boerum Hill neighborhood of Brooklyn.
Urban Standard Capital (USC), a NYC-based fully integrated real estate private equity firm, provided a $16 million condo inventory loan to DDG Partners, the developer of the high-end luxury condominium project 100 Franklin Street in Tribeca’s East Historic District.
USC Founder and President Seth Weissman has been featured among the Top 2022 Real Estate Power 100: the forces shaping the next phase of development in New York.
Urban Standard Capital (USC) supplied the debt package for KDS’ 199 Chrystie Street development, which finished construction in late 2021. The financing includes both senior and mezzanine components with flexible release prices and a floating rate that decreases over the term of the loan. The loan provides KDS with additional time to sell the condo units and maximize proceeds.
Jeremy shared his insight with NYREJ about the changing working environment in the real estate industry: "The digitization of the world in which we manage projects has enabled greater productivity and effective communication from anywhere than we ever could have envisioned and resulted in rebalancing of how we distribute time amongst different working environments.”
Multi-Housing News spoke to Urban Standard Capital's Seth Weissman about how the company is navigating the New York City financing landscape as a small private lender and about the most sought-after financing products in the market.
Urban Standard Capital has arranged a $9.5 million acquisition and construction loan for Chesterfield Faring, Ltd to take over a new development of 20 townhomes in Dallas, Texas. According to USC Vice President Jeremy Plofker, “USC had an existing relationship with Chesterfield Faring and it was natural that they came back to us for this project,” said Plofker. “The borrower saw a good opportunity to bring a new product to a growing market that is already in high demand.”
New York-based alternative lender Urban Standard Capital has fueled its recent expansion into South Florida with a $20 million acquisition loan on a small, vacant plot of land within the wealthy enclave of Everglades Island in Palm Beach, Florida.
As the founder and president of Urban Standard Capital, a fully integrated real estate private equity firm, Seth Weissman seeks out real estate developers and projects that are special and helps them succeed.
Urban Standard Capital provided a $20M loan to Meyer Equities to finance a partner buyout at 265 West 37th Street, a 23-story building in Midtown. Meyer has owned the property for three decades and will use part of the loan proceeds for tenant improvements and leasing costs. Click to see the full list.
Seth Weissman, managing partner of Urban Standard Capital, is focused on developments that haven’t yet sold 15% of their units -- the legal threshold to be declared a condominium under New York state law. Weissman’s firm is offering to buy just enough units at a discount so those builders can meet their 15% sales benchmark.
Urban Standard Capital, a New York-based real estate private equity manager, has launched a targeted $100m fund to acquire condo units in the city and potentially further afield. Click to read the full article.
Check out a recent edition of Grant's Current Yield Podcast with USC founder Seth Weissman for a discussion of the New York City real estate market.
Our Founder Seth Weissman has been included in the 2021 list of honorees for Crain's Notables in Real Estate.
Urban Standard Capital wants to buy 15% of units needed to make offering plans effective.
Seth Weissman’s Urban Standard Capital (USC) has launched a $100 million investment platform to buy condo units from developers who need to hit the 15 percent sales threshold to effectuate condo conversions.
Mitch Rosen, Senior Director of Real Estate, and Seth Weissman, Managing Partner of Urban Standard Capital, discuss the New York City real estate market and how they think it can bounce back in the coming months.
In a time when many have landlord horror stories about jacked-up rents and lack of patience, the Nucitelli’s gave an enthusiastic shout-out in the Bklyner to their landlord, Urban Standard Capital, for the incredible interior renovations they made. The new restaurant space will have a basement for private dining, a full bar, and a coffee program in the mornings.
New York, NY Urban Standard Capital, (USC) a New York based real estate lender, development and investment firm, delivered $6.3 million in loans during the COVID crisis on three separate acquisition deals.
As we move from fear to discovering the reality of tomorrow, the challenge before us is to become stronger and more resilient.
Feeding Neighbors, Keeping Restaurants In Business – #REHasYourBack Connects
We're proud to be featured on NBC news for our #REHasYourBack campaign. The real estate industry stepping up to do what the city can’t.
Urban Standard Capital is leading a real estate industry initiative to help the communities impacted by this crisis. We are connecting real estate firms across the city to purchase and deliver meals to those in need while supporting local restaurant businesses and keeping people employed.
Hot on the heels of New York’s heaviest-hitting lenders, landlords and developers are the smaller, up-and-coming players that some consider the lifeblood of the industry.
Learn how Urban Standard bridge financing helped a developer in NYC
Learn how USC construction loans help make sure your project is sufficiently funded and running on time.
We are very excited to announce that Charlie Brosens will be joining us on May 20th as Vice President where he will co-lead our acquisitions and originations efforts with Ben.
We are thrilled to announce that Ben Barasch has been promoted to Vice President where he will help lead our acquisitions and originations efforts.
