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Kenilworth Capital Partners
strategic advice and co-investment capital
Doug Veasey is the founding principal of Kenilworth Capital Advisors, LLC. Capitalizing on a thirty year career in real estate capital markets, acquisitions, dispositions, development and operations, Doug has positioned KCP to provide sophisticated strategic advice and co-investment capital to expanding developers and sponsors.
KCP’s in-depth real estate and capital markets experience, knowledge and underwriting skills allow clients to maximize value, comprehensively.
Prior to forming Kenilworth Capital Partners, Doug was the Chief Investment Officer for Philadelphia based Stockton Real Estate Advisors, a regional real estate investment and advisory firm.
Doug directed the firm’s acquisition, capitalization and asset management functions for owned and advised multi-family, office, industrial and mixed-use assets in the mid-Atlantic region of the United States totaling approximately 1 million square feet.
Before joining Stockton, Doug held senior investment, capital markets, development and asset management positions at Stoltz Real Estate Partners and The Kevin F. Donohoe Company, acquiring, capitalizing and disposing of office, retail, industrial and residential assets totaling approximately 5 million square feet. Prior to his positions with real estate investors and owners, Doug got his start in the real estate industry as a real estate banker with Chemical Bank (now JP Morgan) and later at Banque Paribas providing construction and interim loans as well as high-yield structured finance investments and loan restructurings.
Investing in the Future
Kenilworth Capital Partners is venturing with a large private investor to provide structured capital to high-quality sponsors to complete and/or recapitalize their projects. Given Pandemic-induced supply chain problems, sub-contractor failures, labor shortages and higher than anticipated interest costs, many excellent projects have experienced significant increases in costs to complete construction. Our program is focused on providing sponsors with a capital solution to cover those costs. We are investing mezzanine debt or preferred equity in single-family, multi-family, industrial and specialty office developments that have experienced cost and/or interest expense overruns to get them to completion and stabilization so sponsors can realize their value. Our capital will be returned at sale or refinance of the project.
We’re also providing capital to projects where we can fill a refinance gap from the original construction debt to the new underwriting debt level. Given the prevalent use of high-leverage debt, particularly construction debt, over the past 3-4 years, many real estate sponsors are struggling to refinance their maturing debt in a considerably higher interest rate environment than existed at origination. The frequently significant gaps in loan amounts require capital solutions from either the sponsor, from an asset sale or from a new investor, a dilutive LP investor or a structured capital investor like Kenilworth Capital Partners providing mezzanine debt or preferred equity. Again, our capital will be returned at sale or refinance of the project.
Our investments will be $5MM-$25MM, 1-4 year mezzanine debt or preferred equity investments targeting SOFR + 9.0%-14.0% coupons plus fees. Coupons will be paid partially on a current basis through a reserve and partially on an accrual basis at repayment. Target markets include primary and secondary east coast markets from Boston to Miami.