Following New Yorker Note Purchase, BHI Boosts Yellowstone’s Credit Facility to $150M

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BHI has upsized Yellowstone Real Estate Investments’ capital call line facility to $150 million from $90 million to arm the private equity firm with capital for future optimistic acquisitions, Commercial Observer can first report.

The increase comes less than a year after the lender provided the initial $90 million line of credit, which was quickly deployed on the purchase of a $106 million note from M&T Bank for the New Yorker Hotel in Manhattan. 

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BHI is the U.S division of Israel’s Bank Hapoalim (BKHYY)

“The track record of Yellowstone’s ownership and leadership to acquire, manage and improve a premier cross section of real estate assets is unparalleled,” Gil Karni, CEO at BHI, said in a statement. “BHI has significantly grown its capital call portfolio and capabilities in the last few years, and is geared to further expand this line of business.”

Yellowstone’s existing debt and equity portfolio also includes 220 West 42nd Street, a 440,000-square-foot office property in Times Square it acquired two years ago from United Kingdom-based investment firm EPIC in a $161 million deed in lieu of foreclosure, PincusCo reported at the time. 

The firm also bought a $170 million note from LoanCore Capital backed by Capstone Equities’ 697-unit Maxwell Hotel building at 541 Lexington Avenue in 2022 and the 597-key Watson Hotel near Columbus Circle for $175 million in 2021. 

Isaac Hera, CEO of Yellowstone, founded the company in 2020 after previously leading residential real estate company Star Real Estate Ventures, whose portfolio was acquired by Morgan Properties and Olayan America.

“We look forward to continuing our relationship with BHI and capitalize on other intriguing opportunities that may develop ahead in the real estate market,” Hera said in a statement. 

Andrew Coen can be reached at acoen@commercialobserver.com