Redefining the role of the real estate investment banker - Banking & Finance - Brief Article

Real Estate Weekly, Jan 14, 2004 by Arthur Fefferman

The role of the real estate investment banker has drastically changed in today's volatile and complex market.

Once primarily deal-makers, these professionals are now involved in every aspect of a transaction; they are true financial architects often bringing equal doses of their own equity, development expertise and marketing creativity to the table on behalf of their clients.

An apt illustration can be found in a recent assignment we completed, which considerably raises the bar on how to handle a difficult deal. AFC's ingenious solutions made possible the development of an unusual high-end loft condominium building in Manhattan's upscale TriBeca neighborhood that deftly combines rehabilitation and new construction.

In order to get the construction and rehabilitation of a luxury condominium project started, we were once again forced to implement innovative financing strategies.

We were retained by the owner of the property--a passive, non-real estate professional--who wanted to develop an underutilized landmarked project of five, high-end loft condominiums and 3,700 square-feet of ground floor commercial space located on Hudson Street in Manhattan's upscale TriBeca.

AFC was able to fulfill the client's wishes by acting as the fee developer and financier to the owner, launching the $14 million project that included the redevelopment of an existing five-story building together with a newly-constructed 6-story adjoining structure.

By taking responsibility for all aspects of the development--including obtaining approvals, retaining the architects and handling marketing

and sales--we were able to get the project off the ground and turn the asset into a economically viable and successful venture.

This property is a prime example of today's sophisticated bankers increasingly implementing creative techniques to "make the impossible, possible" for clients who face difficult obstacles.

ARTHUR FEFFERMAN PRESIDENT OF AFC REALTY CAPITAL