Building on a solid foundation
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In September 2021, IDB Bank entered into a $ 35 million loan for a One and two storey 54,074 square foot building accommodating six tenants, four of which are currently occupied by national brands. The property is located on a Gold Coast real estate 20 miles from Manhattan and 50 miles from the Hamptons: the legendary “Miracle Mile” of Manhasset, home to luxury shopping and more than a bit of history (Billy Joel has already sung on the cruise).
âThis is an iconic real estate, in a part of Long Island that the IDB knows very well,â said IDB lead banker Shirly Dayan, who worked closely with the sponsors and referred the deal to the IDB’s commercial real estate group. âOur knowledge of the industry and the market is a major added value for our customers. Not only do we do the work for them, we see the value in what they do and where.
That same month, in Palm Beach, Florida, IDB served as a syndicator for $ 105 million on a multi-family residential property. âThis kind of loan facilitation is in our wheelhouse,â said Chris Dowd, head of loan syndications and sponsor finance at the IDB. “This is just one example of some very interesting and complex syndications that we were able to execute in 2021.”
These two examples – one commercial, the other residential – demonstrate IDB’s reach in real estate and its growing presence in the Florida, New York and California markets. In total, these three branches of the IDB totaled 43 transactions in 2021, totaling $ 631 million in commitments.
Impressive figures, certainly, but the executive vice-president of the IDB and director of CRE, Gardner Semet, is not satisfied: far from it. News of the IDB’s capabilities and experience in facilitating real estate transactions continues to spread, he said.
âWe have evolved with our customers,â says Semet. âWe have a separate department, with New York Real Estate lending to investors in properties of different categories. To date, the IDB has financed transactions involving apartments, retail, mixed-use, hotels, warehouses, condominium units, shares in buildings owned by cooperatives and lines of credit to companies. investors.
According to Lissa Baum, Executive Vice President and Director of Loans, the IDB’s next step is to increase awareness of what it can offer. âIn addition to providing the personalized solutions our CRE clients need and strengthening our relationships with investors, developers, mortgage lenders and real estate owners, we hope to find more opportunities by spreading the word about who we are and what we can do. “
To this end, the IDB has hired Avi Lieberman as the new Business Development Manager for Commercial Real Estate. Lieberman has an impressive resume, having been instrumental in the great expansion of Amerant Bank’s real estate portfolio since 2012. As the bank negotiates the market and the impacts of the coronavirus pandemic, she is determined to let her skills shine. basic and to develop. its vast capabilities and expertise in real estate.
IDB’s customer base is the mid-market and well-established in industries such as apparel, health food and beverage, and technology. Commercial real estate loans – which received a big boost when customers in other industries started buying property to diversify their assets – is one of the most important segments of banking. Since many of these deals stem from diversifying assets for IDB clients into other sectors, the IDB’s commercial real estate successes have accumulated quietly. Lieberman’s job will be to raise awareness of the IDB’s offerings and expertise in the CRE sector.
âWe have helped many people get through the initial shocks, without selling a single mortgage to struggling ticket buyers,â says Baum. âWe are not newcomers. We’re the wise friend who can help you in ways you haven’t thought of yet, and we’re committed to getting the word out in our established markets.
Provide stable and diversified solutions in volatile markets
Serving customers means being able to deliver complex and often unique solutions. âOur customers know us and understand our varied offerings,â says Baum. âThe IDB provides commercial mortgages, including construction loans, bridging loans and land loans, in addition to providing loans against loans held by our clients. With IDB’s own trading desk, clients can hedge interest rates and manage foreign currency transactions and hedging. In addition to cash management, all of the bank’s commercial services add value to the loans we grant to CRE. The diversity of offers and the way we use them to support our customers is our distinct advantage. In addition, the IDB has also developed a syndication department, allowing it to grant larger home and business loans than the bank had done in previous years.
“Avi and our extended syndication office bring us a lot of experience and connections, âsays Louis G. Barone, Sales Director, IDB Commercial Bank. âThe opportunity here is to apply all of this to the relationship model of the IDB and use it as a stepping stone to the next level of growth. Avi will help us grow with clients adjacent to our current clients and really raise our profile in this space.
Booking loans that expand clients’ options
The IDB continued to support its clients with loans above their average. In addition to local deals and standard home loans, the IDB hopes to help clients leverage even more assets as their opportunities and strategies evolve, especially those in Israel, where the bank is headquartered and has strong ties. .
âWe are always working with Israeli investors who are looking for New York-based lenders with deep regional know-how,â Lieberman said. âBut if they also decide to buy property in international markets, we can provide operating accounts in the local currency, manage their currencies and provide 1031 funds to protect earnings through IDB Capital. Our goal is to see their real estate strategies in a larger context and to maximize every opportunity. “
IDB has always cultivated long-standing relationships, in which the bank and its customers know each other well enough to make trust the most important aspect of interaction. For Lieberman, IDB’s track record and flat structure are ideal for meeting the terms of the deal.
âIn the real estate industry, your client has to have confidence that you will deliver what your terms sheet says, and that’s a big part of what the IDB is. We can also make some pretty exciting things happen, acting quickly when a valued customer has a pressing opportunity. With the reputation and the capacities of this institution, I am convinced that we can continue to develop our portfolio in this market.
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