Our success is rooted in our understanding of the development process and our application of creative solutions to complex situations. Whether navigating the technicalities of land assemblage, leasing up vacant properties, crafting financing solutions, or negotiating with governmental agencies over zoning and environmental issues, our experience and attention to detail enable us to achieve successful results.
Daten Seeks Complex Value-Added Deals
Daten Group is looking to acquire two projects with redevelopment potential in the New York metro area and is not shying away from complicated deals. “We are looking to turn the corner on some construction projects, and then we would like to acquire an office that could be converted to residential, or something else interesting, like a vacant police precinct,” said David Ennis, founder and principal. The company is targeting properties in good locations with complicated value-add components.
Daten is finishing up the renovation of 1462 Second Avenue, which it acquired in 2011 for $3.75 million in an all-cash deal. The company has completely rebuilt the 8,500-square-foot’s 2,000-square-foot ground-floor retail component and renovated five of the eight apartment units above.
“The building was in serious disrepair from years of the former owner being unwilling to put any money into it. The retail space needed to be built brand new,” Ennis noted, explaining that Daten saw the opportunity to revitalize the building and raise rents to market rates. To fund the ex1ensive renovations, Daten tapped to First Niagara Commercial Real Estate Group for a $3.7 million, seven-year loan that was priced at 3.9%.
Daten invests via its $20 million fund, CAD I. The company
launched the fund three years ago and uses it like a revolving line of credit. It repatriates money to the fund by refinancing its development projects, putting mezzanine financing on a property, selling the property or through external equity raises. ”We are not looking to put all the money out on the street at one time. We want
to spread it around to a bunch of different deals,” Ennis added. Daten is contemplating launching a second fund in the near future.
The company’s other projects include a 104-unit, $28 million apartment development through a joint venture in White Plains, and a redevelopment of a vacant Brooklyn Heights police precinct, turning it into condominiums.