The Impact on Lenders of Covid Moratoriums against Eviction and Foreclosure
No matter what side of a real estate transaction you sit, the impact of US Government intervention in our business seems overwhelming. In some cases, we welcome the help as taxpayer funded liquidity programs has certainly helped to support our fragile economy. Unemployment benefits and PPP loans have enabled many borrowers and tenants to stay current. On the other hand, federal and local governments have imposed eviction and foreclosure moratoriums, and those restrictions have been renewed and remain in full force in a majority of states. Our panel of landlords, lawyers, lenders, and investors will debate their perspectives on the right direction for our country and the economy.
- How does a Lender or Landlord enforce payment without the ability to remedy borrower or tenant defaults?
- What impact do these moratoriums have currently and what do we foresee in the future?
- How has COVID affected rent collections, demand and prices of assets
- Attorneys discuss the impact they are seeing in their business and expectation for the future.
- Commercial Landlords talk about the double edge sword of PPP & moratoriums
Event Recording
The Impact on Lenders Landlords of Covid Moratoriums against Eviction and Foreclose
Speakers
Michael D’Onofrio
- Title
- Managing Director @
- Company
- Engineered TaxServices, Inc.
- Role
- Moderator
Michael D’Onofrio is the Managing Director of ETS and sits on the Executive Board. He has had a successful career in finance, energy consulting, and real estate development. Michael has founded numerous successful companies and is a valued member of the team. His strong business drive has added professionalism, consistency and significant growth to the company as a whole as he guides his clients along the path of increased success and missed opportunities for reduced tax liability. He has also mentored many ETS team members to the same success. Michael is originally from Southern Florida and recently relocated to Charlotte, North Carolina with his wife and two small children. They enjoy playing in the great outdoors, mountain biking, hiking, and sports. Michael also enjoys yoga, particularly Bikram Yoga (known as “hot” yoga), and rather than client golf outings, he will happily oblige any ETS clients with an hour of hot yoga instruction!
Bill Bymel
- Title
- Managing Partner
- Role
- Panelist
With over two decades of experience in real estate, Bill Bymel has become known as a pioneer in the distressed debt space by creating a new paradigm for dealing with delinquent borrowers on residential real estate. His strategies and experiences personally overseeing the resolution of $250 million of NPL since 2009 are illustrated in Bill’s book WIN WIN REVOLUTION. Bill spent the last decade as a Senior Director, Signatory at Spurs Capital, a leading mortgage investment firm based in New York City. He recently founded First Lien Capital LP with a focus on NPL opportunities in both residential and small balance commercial real estate. As a Partner in Retail Sites International, a 40-year-old commercial real estate advisory firm based in South Florida, Bill’s clients included McDonalds, BJ’s Brewhouse, Darden Restaurants, and Family Dollar Stores. RSI Asset Management, founded in 2009, acts as a third-party asset and property manager for private equity funds or family offices that invest in Florida. He is a graduate of New York University, currently residing in Beverly Hills, California.
Jack Goldberg
- Title
- Senior Associate @
- Company
- Time Equities Inc.
- Role
- Panelist
Mr. Goldberg is the Senior Associate in the Time Equities Equity Division, the capital raising arm of the 54-year old private real estate investment company. Mr. Goldberg has extensive real estate underwriting and acquisition experience with a variety of asset classes in central and tertiary markets for private and public real estate firms, and graduated from Tulane University’s A.B. Freeman School of Business with a B.S. in Business Management and a focus in Real Estate Finance. Jack has been working with TEI alongside Chairman Francis Greenburger and Managing Director David Becker since 2016, raising capital from Broker-Dealers, RIAs, HNW investors, and institutions through diversified reg. D Funds, direct deals, and 1031 exchanges.
Sheryl Morehead
- Title
- Managing Director, Capital Markets @
- Company
- Sunstone Properties Trust
- Role
- Panelist
Before joining Sunstone as Director of Capital Markets, Ms. Morehead held positions in both the commercial real estate and banking industries. After starting her banking career in Citicorp's National Real Estate Group, Sheryl moved west and became division manager of commercial real estate industries for Bank of California/Mitsubishi managing a $4B portfolio and ten production offices. As CCO and President of First Los Angeles Bank and later, CEO of First Bancorp, she specialized in transitioning challenged institutions with troubled real estate assets to regulatory compliance and profitability. Prior to earning an MBA at Harvard Business School, Sheryl worked for shopping center developer Lanning Corporation of Boston securing financing, leasing and property management. As EVP of M&M Development Corp., she was involved in every phase of development, financing and property management. Sheryl completed her undergraduate work at Boston University earning a BS in finance. At Sunstone, Ms. Morehead is in charge of raising capital on a direct basis to add to Sunstone's integrated framework. She sits on investment committee and is also responsible for debt placement and bank relations.
Tony Barkan
- Title
- Founder, CEO and Managing Principal @
- Company
- Allagash Partners
- Role
- Panelist
Tony Barkan is the Founder, Managing Principal, and CEO of Allagash Partners. Prior to founding Allagash, from 2008-2015, Mr. Barkan was one of five Founding Principals and the Head of Commercial Real Estate at Seer Capital Management, an SEC-registered investment management company with $4 billion AUM. Mr. Barkan planned and executed Seer’s LMI workforce housing value-add strategy; developed and ran the second largest global CMBS B-Piece investment businesses, driving transactions on over $20 billion of US CRE properties; and structured and invested into significant Mezzanine Loan exposure. Prior to Seer Capital, from 2001-2008, Mr. Barkan built and ran alternative investment platforms at Clinton, Harbert, and Sailfish managing portfolios with peak investor equity over $1 billion, a peak long asset portfolio over $10 billion, and peak total market exposure of almost $20 billion while leading teams as large as 20 people.
Notably, Mr. Barkan was an early identifier of the real estate-led economic crisis and by the beginning of 2007 had migrated his hedge fund portfolio to be entirely short using real estate-backed credit derivatives . From 1997-2001, Mr. Barkan was a Senior Portfolio Manager and investment committee member at Pareto Partners (originally Forstmann-Leff). Mr. Barkan began his career trading a range of real estate, commodity, and currency products at Salomon Brothers, Goldman Sachs, and ED&F Man Group from 1988-1997 . Mr. Barkan supports Here Arts Center, Scholars at Risk, and CaringKind: The Heart of Alzheimer’s Caregiving. Mr. Barkan graduated from Princeton University where he was selected to the Honor Committee, and he is a member of the Triple Nine Society.
About
Sunstone Properties Trust
Sunstone is a fully integrated real estate operator, developer and fund sponsor in business since 2012. After 30 years in the commercial real estate business, the founders of Sunstone chose workforce multifamily housing as a sector because of its solid performance throughout varying economic cycles. Sunstone performs its own architectural design work, construction, asset management and fund management to achieve maximum efficiency, cost containment and investor returns. Its acquisition team sources transactions with proprietary software and a network of local brokers. Capital markets works with investors and lenders to optimize Sunstone's access to debt and equity. Risk is managed through a comprehensive due diligence and underwriting process with investment committee oversight. Hands-on portfolio management is effected from acquisition through disposition. Sunstone's markets include Texas, Florida, California, Arizona and Nevada.
Engineered TaxServices, Inc.
Engineered TaxServices, Inc. (ETS) is a licensed engineering firm that focuses on federal, state, and local tax benefits. Engineered Tax Services was founded by CEO, Julio Gonzalez, to bring specialty tax engineering services to mainstream America. There are several federal tax incentives in which the IRS requires professional engineers and scientists to determine the tax benefits in the areas of real estate and manufacturing. Specific to real estate is the ability to depreciate real estate investments by components vs. the traditional expensing of real estate over a 39 or 27.5-year period. A forensic engineering study of a real estate property, in which the building is depreciated component by component, allows investors to expense up to 50% (and in some cases, more because of 100% bonus depreciation) of the purchase of their building up front.Decades ago, cost segregation was only available to real estate investors who worked with the Big 4 accounting firms who had dedicated engineering staffs. Mr. Gonzalez’s goal was to be a resource to the CPA community so that these services could be available to all real estate investors, big or small. Cost segregation continues to be one of the largest tax incentives for wealth preservation. There are very few investments that the United States Federal government allows investors to expense dollar for dollar. Real estate is the one investment from which you can deduct 100% of the purchase price against taxable income. Inherently, this allows for a 50% return on investment at a 50% federal and state tax bracket. Cost segregation allows the investor the ability to mitigate tax liabilities and preserve wealth by accelerating these deductions much quicker. Engineered Tax Services also uses its engineering, scientific and tax team to provide one of the most important federal and state tax credits available to United States businesses in the form of research and development tax credits (R&D). R&D Tax Credits are meant to incentivize manufacturing, innovation and technical design in the United States. These credits are essential to keep labor and promote job creation in the United States. Qualifying activities include developing new or improved products or manufacturing processes, tool and die development, technical design in the construction industry, software development, fracking and drilling technique development, and developing new or improved drugs or formulas, just to name a few. The R&D Tax Credit is a very important federal incentive meant to ensure that US companies remain competitive globally.
Allagash Partners
Allagash Partners offers institutional and HNW investors strategies focused on the wealth of opportunities within the US residential real estate market, stemming primarily from the longstanding, massive shortage in affordable working-class rental properties. These investments are currently being offered as both multi-property private equity real estate funds and as single property investments for compelling opportunities that do not fit within any current Fund’s mandate. The strategies are designed to be scalable and to consistently provide 15%+ net returns while also preserving investor’s capital. Allagash, through its subsidiary Allagash Opportunity Zone Partners which is in process of registering both with the SEC as an RIA and with the CDFI Fund at the Department of Treasury as a Community Development Entity, began active investment activities in 2019 with the Allagash Opportunity Zone CRE Fund I. The firm is now launching the Allagash Multifamily Opportunity Fund I, which seeks to opportunistically purchase, intelligently renovate, efficiently manage, and strategically sell underperforming working-class rental housing properties throughout the US. Allagash was founded by Tony Barkan who serves as Managing Principal and CEO and chairs the investment and operations committees. Allagash’s senior partners bring over 100 years of commercial real estate experience with particular expertise in working-class multifamily housing especially in secondary US markets, which Allagash believes can provide investment opportunities with outsized returns and moderate risk. Additionally, Allagash believes that projects which actively seek to provide a positive social impact should generate higher returns while presenting lower risk. As a result, Allagash seeks to work closely with communities into which it invests in order to understand their community development goals and methodologies for improving stability and resiliency.
Time Equities Inc.
Time Equities (“TEI”) has been in the real estate investment, development, investor management, and asset & property management business for more than 50 years. TEI currently holds over 300+ properties in its own diversified portfolio totaling approximately 33 million square feet of residential, industrial, office and retail property currently valued over $5 Billion. With properties in 35 US states, 5 Canadian provinces, Germany, Italy, Netherlands, and Anguilla, British Virgin Islands, the TEI portfolio benefits from a diversity of property types, sizes and markets.