Bayport Funding has ushered in a new era with the balance-sheet commercial real estate lender promoting Marcia Kaufman to CEO from president, Commercial Observer can first report.
The Great Neck, N.Y.-based company announced Kaufman’s appointment Friday while also simultaneously installing Bayport’s co-founder and CEO, Ami Bar-Mashiah, as chairman. Kaufman, who became Bayport president in 2018, has been focused largely on securing bridge financing for the acquisition of distressed multifamily and residential properties for eventual stabilization.
“It is a very opportunistic time as we’re seeing a lot of [lenders] who came to the industry recently close up and go home; Kaufman told CO of how Bayport can stand out in the current market conditions as other lenders scale back. “Being a balance sheet lender and not having to have our business predicated on the ability to sell loans to Wall Street really gives us a big edge, and also gives our borrowers a large level of confidence.” In Kaufman’s new role, she will be tasked with driving an expanded presence along East Coast gateway markets including Boston, New York City, Philadelphia, Washington, D.C., the Carolinas and South Florida. Kaufman, who has been in the real estate lending industry for more than 30 years, previously held senior leadership positions at American Home Mortgage Ventures, Preferred Empire Mortgage and Arbor National Mortgage.
Kaufman said as a number of lenders step back as interest rates rise, it provides a unique opportunity for Bayport to fill the void for borrowers in need of short-term capital. For multifamily deals, the lender provides interest-only loans at rates typically in the 10 percent to 12 percent range, according to Kaufman. She said the beginning of the year saw a big slowdown in borrowers seeking loans for multifamily, single-family rentals and build -to-rent properties, but the last 10 days have seen a big uptick.
“Real estate investors who see opportunity with properties that need tender loving care and care to bring them back to market know that we’re still here to lend them money; Kaufman said. “We’re here to stay and we’re here to support them as their opportunities come to them in this market.”
Bar-Mashiah takes on the chairman role after leading Bayport as CEO for the past decade. Prior to co-founding Bayport, he served as owner and president of Mortgage Enterprise, a New York State-licensed mortgage banker that originated more than $2.S billion in residential mortgages. He also has served on advisory boards at Citicorp, Chemical Bank and GreenPoint Mortgage.
Over the next two years, Kaufman plans to stick with multifamily deals and transactions with a residential component to them rather than expanding into other sectors. “We want to stick to what we know best; she said. ·1 think lenders who try to be all things to all people ultimately have a problem, and we want to stick to our expertise.”
