Capstak Influencer | Adam Horowitz of Lever Capital Partners

by Capstak

 

 

Adam Horowitz Lever Capital

Adam Horowitz | Principal at Lever Capital Partners and President of the Real Estate Capital Alliance

Adam Horowitz has built a successful career by seeking out and solving the most challenging transactions.

He founded Lever Capital Partners in 2009 and continues to work on complex structured real estate deals for some of the country’s top owners and developers.

Adam has created a culture based on teamwork at Lever Capital Partners that attracts skilled finance professionals to the firm’s offices in New York and Las Vegas.

As President of the Real Estate Capital Alliance since 2015, Adam collaborates with 17 other firms to ensure that they remain up to speed on all the lending and investing challenges facing the commercial real estate financing business.

He earned a bachelor’s degree from the University of South Florida and a master’s degree from Stevens Institute of Technology.

 

He answers our questions:

 

1. What has been the effect on your business of new regulatory requirements concerning commercial real estate financing?

The two regulations that are top of the mind these days are CMBS Risk Retention and Basel III. The biggest concern regarding risk retention is working with a CMBS lender that hasn't executed on a risk retention qualified pool yet. Consequently, new bridge lenders have entered the marketplace to fill the void created as CMBS Lenders continue to evaluate their options on how best to minimize the cost of risk retention under CMBS 2.0 Risk Retention Regulations.

For Basel III the equity requirements can either flush out weaker borrowers or push them into a non-bank lending environment. This in theory could be good for our business as it will allow us to quickly identify which lenders we might approach based upon whether the borrower can satisfy the regulatory requirements of Basel III.

 


2. How do you expect that commercial real estate finance will change in the next 10 or 20 years?

Clearly technology will play a role in commercial real estate financing moving forward, the question I'm pondering is how much will it effect companies like Lever Capital Partners and our colleagues. On the equity side, you'll see a handful of winners in the small equity crowdfunding space which might degrade some of the business for brokers who raise equity capital under $5 million. There will also be an emergence of direct lending that goes through a web platform where lenders bid on vanilla transactions such as multifamily agency loans. I don't think either will have a large impact on intermediaries, like it did with residential, since most transactions are fairly complicated and require a hands-on approach just to get quotes.



3. What are some of the key intangibles that you examine when you are securing funding for a client?

We first look at the sponsor to see if they value working with an intermediary. Most of our clients are ones who we've closed multiple transactions with as they see us as their external investment bankers. In each case we provide value in the form of either finding them a lender/investor that wasn't on most people's radars or negotiating and managing a process that they don't have the bandwidth for internally. The next important intangible is setting expectations. We spend a lot of time making sure we know what capital is available for each transaction and want to make sure the client is aware of what programs they will have access to. A successful engagement is one where we all work together as a team on financing terms that everyone agrees is in the best interest of the client.



4. How does RECA's partner network allow you to compete nationally while leveraging local intelligence?

We built the RECA network around three core ideas:

  • Geographic knowledge. We wanted the best companies in all the major markets to be able to share local knowledge without having to open offices in multiple locations.
  • Diverse expertise. Although we all very experienced groups, some of us have closed more transactions in niche product types such as triple net loans, student housing or healthcare.
  • Experience sharing. This is a give/get trade organization. The more you put into RECA the more you get out of it.

 


5. What drives your involvement with the arts?

I've always felt like the arts are an important part of whatever community you're in. When I visit new cities, go back to more familiar ones, or just stay home I'm always seeking out art in its many forms. It could be visiting a traditional museum, admiring the architecture of a new building, or popping over to the West Side of Manhattan to walk the High Line. Being around the arts allows me to keep in touch with my creative side, which in turn helps me run a successful company. There are many ways I tie myself to the art community, either through being a collector, or helping museum projects that expand access for children to learn about the arts. 

 

 

 

 

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Capstak is a market network for the commercial real estate capital markets. Capstak’s proprietary technology solutions empower the $15 trillion commercial real estate industry by enabling CRE professionals to find deals, source capital and identify trusted business partners with greater ease and efficiency. CRES provides bespoke services to enhance the efficiency of the matchmaking of capital for capital seekers and brokers advising the debt and equity CRE capital markets. The company is headquartered in Reno, Nevada with offices in New York and San Francisco. www.Capstak.com