Jeff Fastov and Michael Lavipour
Senior Managing Director, Credit Strategies; Managing Director of Investments at Square Mile Capital Management
Last year's rank: 20
Square Mile Capital Management’s lending arm produced about $3.5 billion in new originations across 25 deals last year, making a number of splashes along the way in major coastal markets.
After a 60-day pause at the start of the pandemic, the group jumped back into the market, targeting prime construction loan opportunities, as it felt it was able to lock in deals that would deliver post-COVID at lower leverage points and at a better basis.
Square Mile teamed with JPMorgan Chase on a $155 million construction debt package on the first multi-story distribution facility in New York City, which sports loading ramps that lead to the upper floors. The Red Hook, Brooklyn, development was initially conceived to be done on spec, but was later converted to built-to-suit after Amazon came along to lease out the facility.
“Multi-story industrial is a new product type,” Jeff Fastov said. “The market has less experience with it. We’re doing one ourselves.” Square Mile’s investment platform, led by CEO Craig Solomon, has teamed with IPG on a two-story distribution facility project in the Bronx; it will be the largest two-story fulfillment center in the U.S.
“We’re going to see more of this,” Fastov said. “We’re one of Amazon’s biggest development partners, so we’re very familiar with how the world of distribution and e-commerce are going to work going forward.”
Square Mile has also lent on the Cambridge Crossing mixed-use life sciences project being built by DivcoWest in Cambridge, Mass. It also provided $225 million in mezzanine debt as part of a broader construction debt and joint venture equity package for Cape Advisors and The Pioneer Group’s three-building rental development at 30-77 Vernon Boulevard, on the East River waterfront in Astoria, Queens.
And, to close out the year, the group extended a $205 million floating-rate loan to Silverstein Properties and Taconic Partners to refinance Hudson Research Center at 619 West 54th Street on the Far West Side; the five-year loan was to bridge the owners through to the completion of a life sciences conversion.
“There were a couple of preferred equity deals that got lost in the sauce,” Fastov said, adding that the company is being “more selective, working with more experienced and financially stable and liquid sponsors … being conservative on how long it would take to ramp up deals.”
The firm’s investment business has also been making big moves in film and production, such as its buy with Hackman Capital of Silvercups Studios in Queens.—M.B.
