NEW YORK CITY—Eastern Union Funding has added an equity division to serve limited partner investors. The company plans to make the offering global and has staffed up for the effort.
“I'm the first company that's going to broker limited partner equity,” president and founder Ira Zlotowitz tells GlobeSt.com. “This is going to be a game changer for the mortgage business."
Eastern Union has recruited industry veterans Marc Belsky and Charles Fishof to spearhead the effort. Both have worked at Carlton Group under Howard Michaels, and both have been involved in billions of dollars worth of transactions in markets nationwide, working for some of the industry's biggest players.
The new division has spent the better part of a year working with Eastern Union's clients, sponsors, and investors to understand their exact needs.
"This division will not only allow real estate sponsors and developers to expand their networks, but will also introduce them to professionals outside of the real estate industry, investors who are focusing more on cash flow and overall IRRs as opposed to preferred returns" says Fishof. "It also will boost returns to high net-worth individuals and family offices who are currently dabbling in real estate investing but now will be able to take part of the action, getting in on those deals that have always been just beyond their reach."
The equity platform started with a database full of high net-worth individuals who are eager to invest equity in commercial real estate as a limited partner. Rather than just sourcing institutional money, which Eastern Union has been doing up until now, Eastern Union introduces clients that are seeking investors to invest as little as $50,000 ranging well into the millions. Introducing clients to these potential investors, the firm is complementing its execution of mortgages and giving new meaning to its trusted advisor position.
"This is a natural extension of our debt-service and the feedback from our clients couldn't be better," says Zlotowitz. "If you look at the pace investors are signing up, we are clearly satisfying a crazy appetite,"
Belsky adds this is a logical next step in the mortgage business, "We're taking something that exists and making it better, and we're doing that because we are deal guys, we have billions of dollars of closed transactions to point to, and we're providing clients with all of this when we make introductions. That's how we differentiate ourselves."
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