The financial math is increasingly requiring additional partners and funding sources. Glenn Grimaldi, CEO of Naftali Credit Partners, said many developers have been turning toward a combination of senior lending and private credit to fill out the capital stack for development financing. Paul Patafio at Hudson Realty Capital said his firm just finished a $50 million preferred equity loan for a project in Long Island City, Queens, and has been seeing lots of activity with multifamily developers seeking
to plug financial holes.
“The market is shaking itself up because people ignored fundamentals for a while,” Grimaldi said. “And, right now, I think this is a market for experts.”