FREEHOLD, NJ-Attorney Jonathan Hornik has launched a private lending firm, Navesink River Capital, offering real estate financing of $75,000 to $2 million. The firm, which provides financing for all commercial real estate property types, has already closed on three loans, according to Hornik.
He decided to set up the firm after private lenders put the brakes on new loans following the economic recession and real estate market downturn. “Most private lenders became work-out shops,” said Hornick, a two-term mayor of Marlboro in Monmouth County.
“We're beginning to see a rebound in real estate values, and a rising real estate market allows for non-conventional lenders to step into places where conventional lenders fear to tread,” he said. “There is credit available for borrowers with a proven track record from conventional financing, but the conventional lenders can't move as quickly or aren't willing to take the risks as they did prior to 2008. That creates a niche market for private bridge loan lenders like Navesink River Capital.”
Previously, Hornik has served as general counsel to a major national lender, and he is still an active partner in the law firm of LaRocca Hornik Rosen Greenberg & Blaha.
“With my experience both as an attorney and as a commercial lender, Navesink River Capital has the ability to get its hands around difficult situations that other lenders might not be able to handle,” said Hornik. “We will find solutions that only come with experience and attention to detail to get transactions done.”
Two of the three loans already completed involved franchise owners buying out land and improvements from their franchisor. Hornick said the transactions were made difficult because of environmental, but the firm closed both transactions quickly nonetheless.
The third completed loan was for a rehabilitation project in Newark.
Navesink River Capital will fund property acquisition, the acquisition of distressed debt, notes and mortgages secured by real estate, restructuring, discounted payoffs, property improvements, construction, pay-down of other debts and taxes, and will provide loans to operating businesses. Terms range from one-to-three years with extension options, with interest rates from 9% and loan-to-value ratios of up to 75%. Fees are from 2%.
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