Contact Jonathan + Leaflet Gamma Real Estate 101 Park Ave New York, NY, 10178-0002 Cost JB: AFC Gamma is notably among a handful of cannabis-related companies listed on the Nasdaq. Our coverage spectrum includes equity REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and we recently added SPACs to the lineup. And this offer includes a 2-Week FREE TRIAL plus my FREE book. Learn More about insider trades at AFC Gamma. But it will take time to build that out, get the market set up and have some of the regulations probably become more favorable. Does AFC see lending opportunities in the California market, or do you typically shy away from the Golden State and facilitate deals in limited licensed states? Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 10,000 investors around the world. His estimated net worth is $600000. But [Beninatis counsel] filed a document that said [3 Sutton Place] is, Armada Merges With Data Analytics Firm Arialago to Target REIT Research. Is this an April Fools Day joke? . Everything depends on management's creativity, flexibility, and ability to execute. About Jonathan Learn Jonathan's areas of practice. 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. We tend to focus on deals in limited license states and also deals that have real estate as collateral. And while its lower than its previous high, it remains roughly 10% higher than its initial $19.0 price. Kallos said that during the meeting, he flagged the height of the building and warned Kalikow that it might be in Gammas best interest to scale down the project to fit the neighborhoods context or use its air rights elsewhere. 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. And while not uncommon, this isnt the best practice, since it inherently gives the CEO greater control. 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? Now, even Taiwan's own foreign minister is saying that China is on the cusp of a full scale invasion. Chart Data in Insider Trading History Table. Looking to the future, though, if the SAFE Banking Act passes, we could see an influx of institutional capital that would increase competition amongst cannabis-specific and mainstream lenders. One early loan that we funded was with a company called OnePlant, run by Brady Cobb. 8. AFC Gamma can also be reached via phone at 561-510-2390 and via email at [emailprotected] Learn More on Jonathan Gilbert Kalikow's contact information. It engages in cash-flow lending like a BDC but incorporates its borrowers real estate value like an mREIT. Get notified the next time Jonathan Gilbert Kalikow buys or sells AFC Gamma stock. The corporate mailing address for Mr. Kalikow and other AFC Gamma executives is 525 OKEECHOBEE BLVD. 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. Enter your email address below to get our daily insider buying and selling report. Not to mention its proximity to the FDR Drive, to Connecticut, to the airports and to the Hamptons. AFC Gamma, Inc. has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. AFC Gamma's insider roster includes Jodi Bond (Director), Jonathan Kalikow (Insider), Leonard Tannenbaum (CEO), and Robyn Tannenbaum (Director). While the then-single Robyn joined the firm in March 2014 while Leonard was still married to his second wife, Stacey Thorne. 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. Three of the companies are still active while the remaining one is now listed as inactive. But it is obtaining very compelling internal rates of return on its loan investments. Mr. Harrison is currently Senior Operating Partner at Merida Capital Partners, "a private equity firm specializing in the cannabis ecosystem.". It will be a net positive for all operators. Also, our amount of repeat borrowers is huge.. We look forward to making our first of many donations shortly and positively impacting these communities. Disclosure: I am/we are long BXMT, ABR, BRMK, LADR. 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. That isn't unfavorable given how challenging even the latter half of 2020 was. 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.. These comparisons contain one major weakness: AFCG has no leverage. Their experience seems at least sufficient for their roles. Three to four months before the second loan matured, Beninati told Kalikow he had three potential buyers lined up for 3 Sutton Place with one lead candidate. We offer a flexible solution to meet the needs of our borrowers. So the emergence of an mREIT like AFC Gamma (NASDAQ:AFCG) is invaluable. The only count left was criminal usury, for which the court ruled that the building loan had a rate higher than the New York statute. With license value being a component of our underwriting, we tend to focus on limited license states such as New Jersey, Florida, Pennsylvania, Ohio, to name a few. Jonathan specializes in catalyst-driven markets with high barriers to entry, which he now applies to Gamma's nationwide opportunistic real estate investment and hard money lending strategies. 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. With the expansion of dispensaries, we believe those cultivation licenses will only become more valuable as well as the dispensary locations. In customary fashion, underwriters were granted the option to purchase another 937,000 shares at the IPO price, less underwriting discounts and commissions. They purchased a total of 87,783 shares worth more than $1,380,633.40. It comprised a $145. I wrote this article myself, and it expresses my own opinions. What long-term goals do you have planned for the Foundation? There are 4 older executives and no younger executives at AFC Gamma. We needed someone with significant real estate expertise and brought on Jonathan Kalikow as our third partner. What Could Elon Musk Possibly Be Thinking? So he understands the layers of complexity involved. RT: Since starting AFC Gamma, we have completed almost $500 million of transactions we provide capital to an industry that others do not and, in turn, allow these operators to build cultivation facilities, production facilities, and dispensaries. Mr. Kalikow owns 97,500 shares of AFC Gamma stock worth more than $1,520,025 as of March 1st. And AFC Gamma was created roughly half a year later in mid-2020. The Kalikows arent exactly wet behind the ears when it comes to real estate lending. 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. So why they would want to get into a fight with us literally makes no sense. We're very bullish on New Jersey as well. Kalikow interpreted that as a threat and that Kallos was going to do something with these tenants to hurt us, he said. You have the large publicly traded MSOs we have lent to, such as Verano. Cannabis is a local business, where the operators become entrenched in the local communities providing jobs and revenue to the states. Especially when theres so little actual history to work with. Beninati also alleged that Gamma was not a lender but a partner and acted as equity, Kalikow said. He agreesbut then goes radio silent.. Actor and former White House aide Kal Penn explores solutions to the climate crisis with a dose of humor and optimism. And expected credit losses of $465,397 equate to 0.5% of its total capitalization. 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. I am not receiving compensation for it (other than from Seeking Alpha). Kalikow, the 47-year-old married father of four girls ages 8, 10, 12 and 17, is the president of Gamma Real Estate and a man of real estate pedigree par excellence. Jonathan Kalikow Overview Jonathan Kalikow has been associated with four companies, according to public records. This building [101 Park Avenue] is next to Grand Central [Terminal], whereas it could take you another 40 minutes to get over there. Its lowest cash interest rate charged is 12%; the highest is 16%. If I want to buy it, Ill buy it, but I want the borrowers to be successful at the end of the day, he said.). A cheating husband strangled his wife after she found his 'dirty' text messages to other women when he passed out following a binge on Coors Light and Jack Daniel's. Serial cheat Jonathan Neale . But, the surrounding community, two years into a fight against super-tall neighboring commercial buildings, is determined to halt the project. What we thinkand again, we dont knowis that Pilevsky believed that we had used leverage like everybody else does on [this type of] loan.. Above that threshold, the manager receives 20% of core earnings, with a few strings attached. Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies.. Suppose the Senate passes the SAFE Banking Act this go-around, which I believe they will, lenders, including AFC Gamma, will be able to borrow cheaper, which will, in turn, allow lenders to lend cheaper. The company was purchased by Cresco for $213 million a year later after we financed them. Overnight on Wall Street is daytime in Asia. India FM Jaishankar says Soros dangerous, debate needed on democracy, Buffett's Berkshire profit falls on investments, currencies, Bill Gates buys Heineken stake, despite saying he's 'not a big beer drinker', Elon Musk recruits team to develop OpenAI rival - The Information, Musk donated around $1.95 billion in Tesla shares last year, Hedge fund manager Chris Hohn demands Airbus drop Atos deal - letter, Elon Musk's challenge: Stay ahead of the competition, ISS urges Apple shareholders to vote for CEO Tim Cook, other execs' pay packages, Elon Musk accuses media of racism after newspapers drop 'Dilbert' cartoon, French media billionaire Niel fails with bid for TNT television frequence - Arcom. 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. Jonathan Roumie is an American actor best known for his role as Jesus in The Chosen, [1] [2] a crowd-funded television series about the life and ministry of Jesus of Nazareth. Grace Prize for Most Inspiring Performance for TV, Movieguide. Marker Address Rent ? Out of curiosity, how many potential deals has AFC Gamma vetted since its inception, and how many made it to funding or commitment? It could also be positive for lenders assuming they have the infrastructure and capabilities to scale and decrease the cost of capital once the money starts flowing and more deals are being made. We offer our clients our expertise in understanding unique industry issues, the flexibility to customize financing solutions to each transaction and deep relationships with cannabis-focused investors and industry experts. The lead director is affiliated rather than independent and appears to have a very close business relationship with the CEO. Mr. Kalikow is AFC's Head of Real Estate as well as a member of the AFC Board. Mr. Kalikow specializes in what he terms "catalyst-driven markets with high barriers to entry," a strategy that he applies to Gamma's debt . Mr. Kalikow is also Member of New York State Bar Association and Director & Head-Real Estate at. ), 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.. 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. When you're lending to a Verano or an Acreage, you're not just lending to one state; you're lending to multiple states. It generated $5.25 million in revenue from July 31 through December 31. I have no business relationship with any company whose stock is mentioned in this article. (Podcast). Marijuana product sales remained steady, and even saw gains in some states, including in Florida. This article was coproduced with Williams Equity Research (WER). The charities we evaluate are focused on causes that are important to our borrowers. Construction. By January 2016, the ERFAbacked by Kallos and Manhattan Borough President Gale Brewer as well as State Senator Liz Krueger and Councilman Dan Garodnickhad formed and filed its first rezoning application with the Department of City Planning, looking to cap the height of the building and also secure a section of the residential development for affordable housing units. Occupation. Fortunately, WER's expertise is in the private institutional space. Companies like IPR engage in sale-leasebacks. And, with few exceptions, companies involved are heavily excluded from the financial system. Traditional financing is notoriously difficult to get for cannabis companies, experts say. Oh, and there was a bankruptcy filing in between. Hes talking about 3 Sutton Placethe subject of three years of lawsuits, bankruptcies, foreclosures, political haggling and endless 311 calls. Company/Fund Name: Gamma Real Estate Capital Management, Inc. Image Source; Jonathan Roumie's Instagram. Moreover, he has valuable experience in marketing and consulting that will likely benefit AFC. But, according to the post-trial memo, Inbursa backed out a week later because, the bank claimed, the value of the collateral would not be sufficient to satisfy its 45 percent LTV requirement. Prior to co-founding Gamma, Jonathan Kalikow spent 18 years on Wall Street. Though theyre working at expanding that team to five. Do you know what youre doing? I think I said, You have to be kidding me? she said. It has committed to lending another $30 million to existing borrowers and to two new borrowers, according to the release. 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. He also holds a JD from Fordham University School of Law and is a member of the New York State Bar Association. But this experience could aid her in assisting AFC as partner, head of origination, and investor relations. We have found though, that REIT loans give our clients the most flexibility, and we are able to finance more companies this way. We see relatively heavy volume on the day of the IPO, though that quickly subsided. 3-min read. ERFA President Alan Kersh responded to Kalikows assertion by saying, Together, [ERFA] building owners and city residents have reached into their pockets and donated funds to support our rezoning efforts. There is still a limited subset of institutional investors who are comfortable with cannabis, despite us being listed on NASDAQ. We are different from other lenders in two significant ways. We believe even more institutions will enter the industry over time, given the growth the industry is experiencing. Once Jonathan was on board, Len and I built AFC Gamma from the ground up at home during the height of the pandemic lockdown. 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. Given this "unique" arrangement and its direct impact on AFC's decision making it's time to put on our institutional due diligence officer hat. The first type is known as a sale-leaseback, which was around before loans were available. And another sits on another one of his company's boards. First of all, we take a unique partnership approach. Kalikow and Co. And as we sat down with him for lunch at the 101 Club, we got the sense that he doesnt pull punches. But the good news is, if China invades Taiwan, there is a way to protect yourself. Acreage has one of those prized licenses, and we're looking forward to helping them continue building it out. We also talked to them about the fact that the rezoning we were proposing would actually give them additional floor area ratio on sitethat wasnt on site and already therein order to build affordable housing. 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. Lead director Thomas Harrison isnt independent and was on Fifth Streets board as well. Write to Katherine Kallergis at kk@therealdeal.com. See Jon Kalikow's compensation, career history, education, & memberships. 9. In cannabis, it's sometimes difficult to predict the timing of closings, but were excited about our pipeline. Jonathan Kalikow. We understood [Beninatis] shortcomings but we saw a lot of embedded value, Kalikow said. Please don't hesitate to contact us and let us know how we can assist. [In 2015], Beninati goes and describes the enormity of the project, which pisses off all the neighbors, who then raise money for their councilman [Ben Kallos], who then starts a rezoning proposal, Kalikow said. Opinions expressed by Forbes Contributors are their own. 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. The expansion of dispensaries, we believe those cultivation licenses will only become more valuable as well even... 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