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FORT LAUDERDALE, FL-Locally based Cypress Creek Capital and Greenwich, CT-based Contrarian Capital Management are co-sponsoring a $200-million bridge loan program for owners and investors of Florida real estate. The program is aimed at owners and acquirers of land and commercial income-producing properties.
The companies plan to invest the money over the next 24 months. Cypress Creek Capital vice president of real estate investments Mitch Sinberg tells GlobeSt.com that the companies are in the process of negotiating approximately $50 million and expects to have commitments in place soon. The companies are targeting all areas of Florida, except for the Panhandle.
Sinberg adds that the companies expect that most of the opportunities will consist of land investment, particularly land entitled for residential use. "Traditional lenders are sitting on the sidelines with respect to all asset classes, but particularly land," he says. "We believe there is a correction going on in the residential sector, but Florida will be fine in the long term."
Cypress Creek Capital owns approximately $400 million of office and retail properties in partnership with institutional and private investors. Contrarian Capital Management, or its affiliates, manages more than $4.5 billion in 10 funds across a wide range of strategies.
Contrarian Capital Management Real Estate Group director Gil Tenzer says that the company selected Cypress as a co-sponsor because of the company's expertise in Florida. "We are highly confident that with Cypress Creek Capital's expertise and contacts throughout the state, we will be able to attract the right type of land and income-producing properties to meet our investment objectives," Tenzer says in a released statement.
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