Meet Meridian's Philadelphia Capital Markets Powerhouse
With a robust local operation and talented team, Meridian Capital Group is poised to take advantage of Philadelphia’s influx of new investors, consequent construction boom and re-emergence of active sellers. We caught up with four of its key people to take the market’s pulse, learn about exciting developments 2017 will bring and hear a bit about their backgrounds.
Give us a brief overview of your most notable Philadelphia-area financing.
My team placed a mortgage of $84M on 2040 Market St in Center City, Penn. The property was originally the site of the American Automobile Association headquarters before undergoing a dramatic transformation to become a Class-A multifamily asset. Two new wings were constructed on top of the original five-story building to create two 13-story towers. The overall plan increased the size of the building from 120k SF to 300k SF. It was an exceptional transaction that we are proud to have had a role in.
Where are you from? What did you do before joining the Meridian team?
Born in Toronto, I moved to Pennsylvania in my early teens and attended high school and college in the Lower Merion area of Philadelphia. After I graduated, I moved to central New Jersey, where I reside to this day. My first job was with Meridian and I’ve been growing my career with the company ever since.
What, outside CRE, are you passionate about?
Spending time with my family. My wife and I are blessed with six children and one granddaughter. I enjoy water sports and relaxing in warm weather.
What's the most exciting transaction or project you've worked on at Meridian?
I had my first big breakthrough in 2002: A $10M refinance on a 304-unit multifamily property on Chestnut Street. I was fairly new to Meridian and was working to prove myself both to my clients and within the firm. An owner who I had been building a relationship with engaged us to arrange financing and we negotiated a 10-year loan at 6.75%, an extremely low rate at the time. Imagine that!
Give us a brief overview of your most notable Philadelphia-area financing.
If I had to pick one, I would say the Rittenhouse Hill Apartments. We arranged $116M in financing for this Class-A multifamily property located in northwest Philadelphia, consisting of two towers totaling 626 residential units, 24.5k SF of commercial space and 639 parking spaces. We made a market for this transaction and negotiated a favorable five-year loan with a fixed rate of 3.13%.
Where are you from?
I was born and raised in Toronto and went to school in Montreal. After marrying, I moved to New Jersey, where I began my career with Meridian.
What did you do before joining the Meridian team?
I owned an advertising and marketing company, serving South and Central New Jersey. Although I was running my own marketing company, I started exploring other opportunities in 1999. I have a strong background in sales, which is what brought me to Meridian, where I started as an entry-level broker in Meridian’s New Jersey office.
Give us your single best and single worst events, developments or trends witnessed in 2016.
Best: Philadelphia has experienced an influx of new investors providing momentum for the market and new relationships.
Worst: Rising interest rates and lending limitations arising from a more stringent regulatory environment have constricted the market.
What, outside CRE, are you passionate about?
I am very passionate about sports. I am a big fan of the Maple Leafs, the Blue Jays and the Buffalo Bills.
What’s the most exciting project you’ve worked on for Meridian?
Recently, I got involved in a transaction only a week before closing. The deal was a 39-unit, $12M purchase of a newly constructed student housing building just outside of Center City, Penn.
The borrower couldn’t meet the bank’s guidelines, and I became involved on the bank side. I designed a structure where the borrower would obtain environmental insurance, assuaging the bank’s concerns and letting us close.
Give us a brief overview of your most notable Philadelphia-area financing.
We placed a mortgage on a 270k SF retail center with over 40 tenants in York, Penn. 30% of the tenants’ (including three 20k+ SF retailers) leases were rolling within the next one to three years. Our client was looking for a non-recourse, long-term non-CMBS loan. Meridian leveraged its relationship with a regional portfolio lender and obtained a 70% loan-to-value, non-recourse loan, below the 4% rate range that was fixed at application.
Where are you from?
I am originally from St. Louis, Mo. I became an avid Cardinals fan after I gave up on the Rams long before Stan Kroenke moved them to California. I moved to Bala Cynwyd in 2013 and shortly after found my passion in real estate.
What drew you to Meridian?
Meridian is one of the strongest commercial mortgage brokerage firms in the United States, and Philadelphia real estate happens to be Meridian’s bread and butter. Being local and having intimate knowledge of the markets made me confident that I would be able to service clients.
What can those in the industry look forward to this year?
I believe there will be many acquisition opportunities. As interest rates rise, potential sellers will become more serious about selling.
What, outside CRE, are you passionate about?
Community outreach for local Jewish causes is important to me. I also believe strongly in giving back to the community and I participate in many local charitable organizations.
What do you do for fun?
I like to play ball with my sons and tennis with my clients.
What's the most exciting transaction or project you've worked on at Meridian?
I recently worked on a $10.3M mixed-use deal in Old City, Penn., that was a time-sensitive closing, as the client’s CMBS loan was maturing. Our team got involved and successfully closed in 40 days, from start to finish. The closing was in August, a particularly slow time of the year, but we were able to coordinate with all necessary parties and get it across the finish line in time.
Give us a brief overview of your most notable Philadelphia-area financing.
Aspen Village is located on North 49th Street in West Philadelphia. It consists of three newly constructed two-story multifamily buildings, totaling 63 units. Meridian was able to demonstrate to the lender how the area was transitioning to an urban working neighborhood with the recent addition of the Children’s Hospital of Philadelphia facility, among other institutions. Based on this thesis, we were able to negotiate a high-leverage loan with a flexible prepayment penalty that aligned with the sponsor’s business plan.
Where are you from?
Born and raised in Israel’s capital, Jerusalem, I moved to the United States in 2002 to pursue an education and decided to settle in central New Jersey.
What did you do before joining the Meridian team?
I was a residential mortgage broker before joining Meridian.
What drew you to Meridian? What’s your area of expertise?
After the 2008 crash, there wasn’t much opportunity in the residential mortgage business. However, I remained passionate about real estate financing. I worked in various real estate-related enterprises for a few years before joining Meridian’s New Jersey office, which was expanding. Now I focus solely on commercial loan origination.
Give us your single best and single worst events, developments or trends witnessed in 2016.
Best: The Philadelphia construction market is booming. Developers are eager to build quality housing, even in submarkets that were once very challenging.
Worst: Convincing construction lenders to get behind all the positives in sponsors’ long-term business plans. Once we have the opportunity to tell the story, it goes a long way.
What should pros in the sector be wary of?
Rates are going up and as a result many underwriters have become very conservative, which impacts the entire process.
What, outside CRE, are you passionate about?
My family and my community are what I’m most passionate about.
What do you do for fun?
I enjoy family outings and get-togethers.
