JB: Looking ahead this year, what will be AFC Gammas biggest hurdles to overcome, and are there any opportunities to look forward to? Why did your team decide to go public in March 2021, and have you noticed a shift in how cannabis stocks are viewed among institutional investors in the past year? After all, this started out as a beautiful dream. Five of those six were trying to assess my strength and desire to hold itto see if they can get in at a cheap price.. 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) There are so many great opportunities to put capital to work with good borrowers. Occupation. The Kalikows arent exactly wet behind the ears when it comes to real estate lending. Jonathan Kalikow is currently associated with one company, according to public records. Back then, the site was comprised of three low-rise apartment buildings. [Beninati] would have made $50 million after paying us off, had he done the sale, Kalikow said. The only other challenge is going to be that as capital comes back, we're going to have to either refinance those existing borrowers or deploy capital. 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 . ), Beninati, on the other hand, claimed that it was Gamma that made unreasonable demands around a potential sale in the companys Chapter 11 disclosure statement; he attempted to reach a resolution with Gamma to ensure that creditors were paid, but Gamma demanded it be paid almost $50 million more than it was owed before creditors would be paid.. The company is co-founded by Robyn and Len Tannenbaum along with Jonathan Kalikow. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. RT: Given our focus on limited license states, our two favorite medical markets, aside from Florida, currently are Ohio and Pennsylvania. Im proud. (When asked about a stop-work order issued on June 28 by the New York City Department of Buildings, Kallos said, I wish I could take credit for that stop-work order. That's considerably lower than the likes of Blackstone Mortgage Trust and Starwood Property Trust's (STWD) ~8% yields the two commercial mREIT heavyweights. Please disable your ad-blocker and refresh. This April, CO reported that Gamma had spent the previous few months demolishing the three tenement buildings that had previously occupied the site. RT: We're excited about New York, although there is some work to do. This creates a very quick and reliable way to boost its cash flow from about $1.25 per share to $1.50-$1.75 in short order. Learn More on Jonathan Gilbert Kalikow's trading history. Company/Fund Name: Gamma Real Estate Capital Management, Inc. It yields 8.3% despite more than doubling in price in the past 12 months from $6.67 to $16.16. Mr. Kalikow is also Member of New York State Bar Association and Director & Head-Real Estate at. So he understands the layers of complexity involved. The stock was acquired at an average cost of $15.62 per share, with a total value of $899,712.00. Jonathan specializes in catalyst-driven markets with high barriers to entry, which he now applies to Gammas nationwide opportunistic real estate investment and hard money lending strategies. All Rights Reserved. The first type is known as a sale-leaseback, which was around before loans were available. Founder of Gamma Real Estate Capital Management, Inc., Jonathan Kalikow presently occupies the position of President for Gamma Real Estate Capital Management, Inc. and Director & Head-Real Estate at AFC Gamma, Inc. Get New Jersey Jewish News's Newsletter by email and never miss our top stories Free Sign Up Services were held Feb. 11 with arrangements by Bernheim-Apter-Kreitzman Suburban Funeral . Moreover, he has valuable experience in marketing and consulting that will likely benefit AFC. Portfolio Builder / Fund Intersect. So, as a REIT, we need to have real estate as collateral. Aside from Arizona, New Mexico, and Nevada, most of our deals are made in Mississippi. Jonathan 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. Its a pain. The lead director is affiliated rather than independent and appears to have a very close business relationship with the CEO. After the sale, I took some time off and started a family office, and saw an arbitrage opportunity in the cannabis industry while researching investments. AFC Gamma seeks to work with operators, preferably in limited license states. It will be a net positive for all operators. Also, our amount of repeat borrowers is huge.. It was not a threat; it was a specific explanation of the fact that I had hoped that we could work together., One of the ways Kalikow believes Kallos followed through on what he thought was a threat was through the communitys increased use of 311 calls this past summer, specifically around the Fourth of July weekend, which invited greater scrutiny on the site. At the same time, management indicated there were $561.8 million of potential loans under review. The charities we evaluate are focused on causes that are important to our borrowers. And while its lower than its previous high, it remains roughly 10% higher than its initial $19.0 price. Includes Age, Location, Address History for Jonathan Kalikow; Arrest, Criminal, & Driving Records . Prior to co-founding Gamma, Jonathan Kalikow spent 18 years on Wall Street. Current address 215 E 68th St #2M, NY, NY 10065 $3,040: B. We believe its well-positioned to profitably capitalize on the almost completely untapped market of financing cannabis projects. When youre looking at this building in the skyline as you come over the 59th Street Bridge, its center stage. Recently IPO-ed companies can be quite the endeavor to analyze. Our bid out of bankruptcy [for 3 Sutton] was $86 million, so thats a $100 million crystallized loss. 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. Not to mention its proximity to the FDR Drive, to Connecticut, to the airports and to the Hamptons. As in, now youve fucked with the wrong person.. They were a Florida operator that we backed in November 2020 and provided capital to build out their Indiantown cultivation facility. 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. Moving down the line, Tomer Tzur appears to be truly independent. This building [101 Park Avenue] is next to Grand Central [Terminal], whereas it could take you another 40 minutes to get over there. The company was purchased by Cresco for $213 million a year later after we financed them. It comprised a $145. 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. He agreesbut then goes radio silent.. Kalikow said that his team explained to Beninati that in almost no other scenario would he cash out for $50 million. Kalikow has reason to be angry. What long-term goals do you have planned for the Foundation? First, it's key to realize the uncertainty involved. Jonathan Neale strangled his wife after he passed out drunk on the floor. Jon Kalikow is President/Co-Founder at Gamma Real Estate. Mr. Kalikow specializes in what he terms "catalyst-driven markets with high barriers to entry," a strategy that he applies to Gamma's debt . 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. Information is often lacking there, and one has to dig very deep to uncover the full picture. Jonathan Kalikow was born and raised in New York. Live market coverage co-anchored from Hong Kong and New York. 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 . 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. Im sure itll be successful because there are a lot of powerful people involved who are smarter than me, but I dont see us building new tunnels or bridges or subway lines any time soon., I tend to be a very under-the-radar person, Kalikow explained. That isn't unfavorable given how challenging even the latter half of 2020 was. Jonathan Neale, 40, fell asleep by his front door after a day of drinking and . 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Pennsylvania Senators also discussed the potential for recreational for the first time at a GOP-led committee hearing in February. Just last month, AFC Gamma successfully sold 6.25 million shares of common stock at $19 per share. If you have an ad-blocker enabled you may be blocked from proceeding. We understood [Beninatis] shortcomings but we saw a lot of embedded value, Kalikow said. 8. That's 40.74x the amount of originated and funded loans it had as of February 15, 2021. Kallos, Krueger, Garodnick and a representative of Brewer met with Kalikow on May 11 to discuss controversies surrounding the site, including the communitys firm opposition and how steep a climb Gamma would have to complete the project. Author's note: Brad Thomas is a Wall Street writer, which means he's not always right with his predictions or recommendations. 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. Of course, as in any market, some operators will be successful, but we do not have plans to enter the California market. He is president and founder of Gamma Real Estate, a boutique commercial real estate firm based in New York City. We find solutions to help them expand and meet their needs versus roadblocks. We provide term loans, draw facilities, and construction loans. Learn More on Jonathan Gilbert Kalikow's trading history. Jonathan Kalikow. We needed someone with significant real estate expertise and brought on Jonathan Kalikow as our third partner. Mr. Harrison is currently Senior Operating Partner at Merida Capital Partners, "a private equity firm specializing in the cannabis ecosystem.". I was also in charge of investor relations at Fifth Street and was doing healthcare consulting while we both recognized the lending opportunities in cannabis. Lead director Thomas Harrison isnt independent and was on Fifth Streets board as well. We weren't able to discern what type of healthcare companies were involved. Prior to co-founding Gamma, Jonathan Kalikow spent 18 years on Wall Street. Id make over a billion! , Kalikow added, It was very clear that the money was not nearly as important to him as his name in lights.. The higher end of that range equates to an 8.3% yield. Kalikow interpreted that as a threat and that Kallos was going to do something with these tenants to hurt us, he said. We were at the meeting doing our due diligence and checking on the project like any good lender would. Jonathan Kalikow Overview Jonathan Kalikow has been associated with four companies, according to public records. Then you have the tier right below the top tier MSOs, where you have some public like Acreage, who is one of our borrowers, and then some private like Nature's Medicine and Justice Grown. 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. The proposalbrought forth in January 2016would ban commercial development between East 52nd and 59th Streets east of First Avenue and cap the height of new structures at 260 feet. We knew it would provide us with a great head start and the ability to have the best cost of capital in the industry, which allows us to be competitive on pricing with our borrowers. Paul was shot in the back of the head It primarily originates loans structured as senior loans secured by real estate, equipment, and licenses and/or other assets of the loan parties to the extent permitted by applicable laws and the regulations governing such loan parties. We made one loan then we made a second loan to complete the purchase. Gamma provided an 18-month loan that then was refinanced with a seven-month, $147 million loan in June 2015. Learn More on Jonathan Gilbert Kalikow's age. We really like the state of Ohio as the market continues to be ripe for cannabis operators since its a limited license state. And expected credit losses of $465,397 equate to 0.5% of its total capitalization. Our coverage spectrum includes equity REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and we recently added SPACs to the lineup. West Palm Beach-based REIT has so far provided $50M in financing to five borrowers. Information on this page was last updated on 6/17/2022. 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