When Multifamily Developers Become Lenders

December 3, 2018


Amid a record-setting apartment boom that has tested the fundamentals of the market, some multifamily developers are getting into the mezzanine lending business as a hedge against oversupply, according to Taylor Johnson client Ginsberg Jacobs LLC. After discussing the trend with co-founder Sonny Ginsberg, TJ pitched and secured coverage in GlobeSt.com. In the resulting story, Ginsberg provided an overview of the strategy’s benefits, including the ability to stay within a familiar asset class and geographic market without the risks associated with recourse liability. Moreover, in the event a project fails, the lender can take over the asset at a discount, using familiar skills to maximize the value of the underlying real estate.

Sonny Ginsberg of Ginsberg Jacobs LLC talked to GlobeSt.com about how multifamily developers are becoming mezzanine lenders amid changing market conditions.


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