M id A tlantic Real Estate Journal — December 2023 — 3A
www.marej.com
M id A tlantic R eal E state J ournal
ED BANK, NJ — Den- holtz Properties , a leading real estate devel- Fund will offer solutions for CRE operators facing temporary capital disruptions Denholtz Properties launches Denholtz Opportunity Fund II: A rescue capital fund R ing failures in the first half of 2023. As a result, many opera- tors continue to be faced with
bring their projects to life.” In other Denholtz news, Baseline Social, a 17,100 s/f bar, restaurant and entertain- ment venue, located at The Commissary at Baseline in Oceanport, NJ has opened. Baseline Social joins fellow tenants Birdsmouth Beer, a craft brewery and tasting room and MGT Foods, a third-gen- eration wholly-owned family business behind popular food brands such as Mr. Green Tea Ice Cream, Mr. Mochi, The Bear & The Rat Cool Treats for Dogs and Eat Mud Non-Dairy Ice Cream at The Commissary at Baseline.
“We know how important Fort Monmouth was to its sur- rounding communities and we are deeply honored to play a role in bringing it back to life,” said Steven Denholtz. “This project has been an exciting example of the transformative power of real estate invest- ment in creating spaces that drive economic activity while serving as hubs for their local communities.” Baseline Social is a one-stop entertainment, dining and bar experience for the residents of Monmouth County and be- yond. Guests are immediately welcomed by a 640 s/f LED
viewing wall that is perfect for watching the game and a 38- seat platform lounge ideally suited for live music or private events. Sports fans can also enjoy Baseline Social’s 3,700 s/f entertainment section contain- ing five virtual golf bays with full-swing technology. The space’s mezzanine boasts all the amenities need- ed to host a range of private parties beyond its interior space. A large outdoor bar and lounge section features 11 bar seats, a variety of seating options with infrared heat- ers and a firepit lounge with three-season access. MAREJ
temporary challenges in securing needed fi- nancing for under-con- struction or operational buildings. Our rescue capital plat-
opment and investment company, an- nounces the launch of the Denhol tz Opportuni- ty Fund II. The Den- holtz Oppor- tunity Fund
form is designed to provide im- mediate financial assistance to help close the financial gap and help commercial real es- tate developers and operators Stephen Cassidy
Steven Denholtz
II offers tailored, capital struc- ture solutions through pre- ferred equity and or mezzanine debt, providing proceeds of $5M and $25M per project, subor- dinate only to first mortgage debt. Preferred geographies include New York, New Jersey, Pennsylvania, Florida and the Southeast. This specialized Fund is designed to support commercial real estate owners navigating temporary capital challenges including operating deficits, refinancing obstacles, unmet sale projections, cost overruns, and leasing below initial estimates. Managed by Denholtz Prop- erties’ CEO Steven Denholtz and president Stephen Cas- sidy , the Fund’s custom capital solutions are built on the com- pany’s deep understanding of the asset management process and the needs of today’s real estate operators. “As owners ourselves, we are acutely aware of the capital challenges today’s macroeco- nomic environment brings to owners and developers,” said Denholtz. “We are proud to introduce our bespoke rescue capital solutions to the com- mercial real estate community to help companies find success in a difficult market.” According to J.P. Morgan Private Bank , nearly $1.5 tril- lion of commercial real estate debt is due to mature within the next two years. Despite the growing need for financing solu - tions, the Mortgage Bankers Association anticipates a 38% decline in commercial and mul- tifamily mortgage borrowing and lending in 2023 compared to 2022. Consequently, there will be an exponential increase in the need for preferred equity and mezzanine debt to bridge the current challenges facing property owners. Cassidy added, “The financ - ing gap has been driven by a multitude of factors including interest rate hikes and several high-profile commercial bank -
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