ORIGINATOR PROFILE
NRE Capital Partners
NRE Capital Partners LLC (“NRE” or the “Originator”) is a New York based real estate investment firm that originates, underwrites, structures and funds debt and equity commercial real estate transactions nationwide. Since 2002, NRE, its principals and its predecessor, Strategic Capital Solutions (SCS), have consummated over $800M in debt and equity transactions.
Deal Sourcing & Underwriting
NRE’s primary focus is on middle market ($5-$70M) special situation opportunities that exist on a market or event-driven basis for asset-based real estate loans and commercial cash flow generating properties. Asset classes include commercial, residential, hospitality, mixed-use, office, retail and industrial real estate. Typical terms are 6 months to 3 years with LTV/LTC of up to 75% (may increase to 80% depending on the asset class and other deal specific items). Its investment partners include high-net worth individuals, hedge funds, private equity firms and institutional investors.
NRE leverages its extensive experience in lending/finance, real estate development/construction, risk management, legal, workout, restructuring, operations and property management. NRE and its principals are also owners and operators of most asset classes in various locations throughout the United States. In its underwriting, NRE adheres to conservative credit standards, builds creative structures and plans for multiple exit strategies. It utilizes quantitative as well as qualitative methodologies to conduct a bottom-up and top-down analysis of fundamentals and the underlying collateral. NRE is actively involved in all aspects of the third-party review process, and after closing of a loan, continuously monitors the underlying collateral and updates its analysis to reflect real-time market intelligence and, in many cases, services the loans as well.
Performance Highlight
Since inception in 2002, NRE, its principals and its predecessor entities have originated over 150 loans totaling over $460M, of which 10 remain active. As of January 26, 2019, there has been no principal loss.
Management
Edward Mehrfar, Esq
Co-Founder and Senior Managing PrincipalMr. Mehrfar is the co-founder and Senior Managing Principal of NRE and its predecessors and its affiliates. In addition to being the operational head of the NRE group of companies, Mr. Mehrfar serves on its Investment Committee. Prior to founding NRE, Mr. Mehrfar founded and managed SCS and its affiliated companies. Since 2002, SCS originated or closed approximately $700M of real estate bridge loans. NRE was created in 2015 as the successor of SCS. Prior to founding SCS, Mr. Mehrfar founded, operated and sold several branch offices of On-Site Trading, a proprietary equity trading firm, managing 150 proprietary equity traders. From 1991 until 1998, Mr. Mehrfar specialized in banking, structured asset-based financing, venture capital, mergers, acquisitions and securities law, including special products and derivatives at the New York offices of what is now Clifford Chance and Fried, Frank, Harris Shriver & Jacobson, representing numerous financial institutions, funds and Fortune 500 companies.
Mr. Mehrfar received a B.A. from the University of Michigan in Economics and Political Science, graduating Cum Laude and with high honors, and graduated Cum Laude from Fordham University School of Law. He received his Series 63, 65 and 7 licenses in 1999 (no longer active) and his New York State Real Estate Brokers license in 2015.
John J. Morris
Co-Founder and Senior Managing PrincipalMr. Morris is the co-founder and Senior Managing Principal of NRE. Mr. Morris acts as CFO of NRE, serves on its Investment Committee and is a member of NRE Asset Management LLC, the asset management and servicing arm of NRE, and its affiliated entities. Mr. Morris also runs a successful accounting practice founded in 1992. Prior to joining NRE, Mr. Morris was the Comptroller of Smithtown, Long Island and worked as an Accounting Supervisor at the predecessor company of Marks Paneth LLP, a real estate accounting firm with offices in major markets throughout the East Coast.
Mr. Morris received a B.S. degree from CW Post Campus, Long Island University where he majored in Accounting and Finance.
2 Represents an average net realized internal rate of return (IRR) with respect to all matured investments in your portfolio, utilizing the effective dates and amounts to and from the investments and net of management fees and all other expenses charged to the investments. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. All securities involve risk and may result in significant losses, including the loss of principal invested.[read more]