Industry

Financial Services

Company Type

Private Equity and Mezzanine Fund

Location

Hoboken, NJ

Size

$100 Million

Investment Type

Equity

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STOLAR CAPITAL

Overview

Stolar Capital, a successful multifamily operator and real estate investment fund manager, is seeking $100 million to make preferred equity and mezzanine investments in multifamily properties throughout the US.


The fund’s investments will be subordinate to a first mortgage, but senior to common equity. Even at this more protected position in the capital stack, the fund’s investments will target net returns of 10-12% (detailed financial model with supportive data and analytics, including historical information, risks and targeted returns available upon request)


There is strong demand for multifamily housing due to persistent shortages in housing units across the country, which has been exacerbated by the COVID-19 pandemic


With a ten-year development track record, Stolar has key insights in sourcing, conducting due diligence on, and structuring investment opportunities – and has the capacity to complete and manage projects


Stolar has identified middle market properties (asset value less than $75 million) as an ideal asset class due to strong deal flow, relative lack of institutional competition, and strong potential risk-adjusted yields (supporting data and analytics, including historical information, risks and targeted returns available upon request)

Stolar Fund I Investment – Durham, NC

STOLAR CAPITAL

Opportunity

According to the Wall Street Journal, the US has a shortage of about 5.5 million single and multifamily individual housing units. US builders added on average 1.22 million new units each year from 2001 to 2020 – down from the 1.5 million long-term average (1968-2000) – while population has steadily increased.


The pandemic has exacerbated the slow pace of new home construction due to supply chain issues, labor shortages and rising prices for materials and labor


Demand for multifamily properties is anticipated to remain strong to meet the need for shelter, in-light-of insufficient growth of single-family home supply


Senior lenders continue to be more conservative than prior to the 2008 financial crisis and the subsequent enactment of Dodd-Frank, which has left persistent financing gaps between sponsor equity and senior financing that may provide attractive risk-adjusted yields for preferred equity and/or mezzanine financing to fill the capital stack


Stolar believes there are many high-quality multifamily development opportunities as well as value-add prospects that have a need for preferred and mezzanine financing at attractive LTVs and yields

Stolar Fund I Investment – Jacksonville, FL

STOLAR CAPITAL

Solution/Strategy

Focus on investment and lending opportunities that target net yields to investors of 10-12%, with 15-30% LTC collateral cushion (detailed financial model with supportive data and analytics, including historical information, risks and targeted returns available upon request)


Seek off-market opportunities sourced through Stolar’s extensive relationship network


Invest in markets with a 5+ year history of population, rent and job growth as well as affordability, STEM job presence, diversified economy, or irreplaceable institutions (state capital, universities, etc.)


Invest with experienced sponsors with successful track records


Focus on middle market (asset value < $75 million) – generally off the radar of large institutional investors with cheaper sources of capital

Stolar Fund I Investment – Tampa, FL

Stolar Fund I Investment – Tampa, FL

STOLAR CAPITAL

Management

Peter Brosens

Founder

 

Oversees business development and manages acquisitions.


Previously, was with The JBG Companies (now JBG SMITH), in Washington, DC and underwrote, managed, and developed large commercial buildings.


Worked on several key deals of over $100 million, and several hundred thousand square feet of commercial space.


Acquired, rehabilitated, and leased single-family homes in the Washington Metropolitan area as an outside business activity while at JBG. BA, Columbia University.

Joe Carroll

 

Prior to Stolar, worked for The Related Companies in New York City and focused on Hudson Yards, a 28-acre, $20 billion development on the west side of Manhattan – the largest private real estate development in the history of the country.


Began career with The JBG Companies (now JBG SMITH) in Washington, DC and worked on a portfolio of 125 properties throughout the region with a focus on mixed-use, urban, infill projects.


BA, Finance, magna cum laude, University of Notre Dame. MBA, Finance & Real Estate, The Wharton School at the University of Pennsylvania.

STOLAR CAPITAL

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Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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