NEW YORK CITY — Newmark has placed a $24 million loan for the refinancing of 5-9 Union Square West, a 120,000-square-foot office building in Manhattan. The eight-story building, which was originally constructed in 1897 and formerly known as The Spingler Building, was fully leased at the time of the loan closing. Paul Talbot of Newmark placed the five-year, fixed-rate loan through Amalgamated Bank on behalf of the borrower, locally based owner-operator GFP Real Estate.
SAN FRANCISCO — CBRE has secured $8 million in acquisition and construction financing for Fulton Retail DE1 LLC. The borrower has acquired a site at 555 Fulton St. in San Francisco and plans to develop a Trader Joe’s grocery store on the site. The 16,600-square-foot location may open by fall 2024. Regina Wang, Connor Lemley, James Bach and Griffin Walker of CBRE arranged the 30-month, fixed-rate bridge loan for the borrower to acquire and build out the retail space.
CRANSTON, R.I. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $9.1 million loan for the refinancing of two adjacent multifamily assets in Cranston. Built in 2016, the property at 125 Midway Road totals 29 units in one-, two- and three-bedroom floor plans. The other building at 45 Poplar Drive is an adaptive reuse of a former Catholic school and features 20 one- and two-bedroom units. Robert Damigella of MMCC arranged the debt, which was structured with a 6.35 percent interest rate, 65 percent loan-to-value ratio and a 30-year amortization schedule. The borrower and direct lender were not disclosed.
There are a variety of ways to build affordable housing, but implementing these strategies has become an increasingly difficult proposition in 2023. Affordable housing projects seem to face challenges on every front. Generally affordable housing developers will: Despite intensifying renter demand for new units, developers are struggling to make their projects financially feasible, says John Ducey, chief production officer in the affordable lending group at Walker & Dunlop. “Affordable housing developers are facing some of the toughest headwinds I’ve seen in more than 20 years in the industry,” Ducey says. “That means developers are forced to work harder than ever to structure deals that stretch scarce housing subsidies and maximize agency financing.” Challenging Conditions One impediment to affordable housing efforts is reduced future rent levels, related to area median income (AMI) caps the Department of Housing and Urban Development (HUD) imposed recently on LIHTC properties in many markets in the United States. The unexpectedly restrictive caps forced developers to slash revenue projections, scuttling some transactions and forcing many loan applicants to renegotiate or seek alternative financing to salvage deals. On the expense side, inflation and the labor crunch continue to drive up costs for new construction, renovation of older affordable …
LAS VEGAS — Gantry has secured a $17 million fixed-rate refinancing for the first phase of Silverado Commerce Center, an industrial property in southwest Las Vegas. The borrower is a private real estate investor, which developed the property. Proceeds of the loan will pay off the developer’s construction loan. Chris Funai of Gantry arranged the 10-year loan, which features a fixed rate and a 30-year amortization schedule. One of Gantry’s correspondent life company lenders provided the funds. The property features two industrial buildings totaling 141,000 square feet. At time of financing, the asset was fully occupied by multiple tenants.
FORT WORTH, TEXAS — Tower Capital, an Arizona-based boutique advisory firm, has arranged $72.9 million in construction financing for Village at Golden Triangle, a 317-unit build-to-rent residential project in Fort Worth. The borrower and developer, Arizona-based Empire Group, acquired the 48-acre site in August 2022 with plans to develop 30 acres and sell the remaining 18, which are zoned for retail and office usage. Homes will come in one-, two- and three-bedroom formats and have private yards. Residents will have access to amenities such as a pool, outdoor grilling and dining areas, fitness center and a community clubhouse. Construction is set to begin by the end of the month. An expected completion date was not disclosed.
AUSTIN, TEXAS — Regions Bank has provided a $17.8 million construction loan for 71 Logistics Center, a 216,000-square-foot speculative industrial project that will be located near Austin-Bergstrom International Airport. The facility will sit on 45 acres and feature 142 parking spaces, 54 trailer parking spaces, an ESFR sprinkler system and 32-foot clear heights. Chris Drew of JLL arranged the debt on behalf of the borrower and developer, Atlanta-based MDH Partners. ARCO/Murray is the general contractor for the project, which is slated for an second-quarter 2024 completion. JLL is also the leasing agent.
JERSEY CITY, N.J. — New Jersey-based financial intermediary Cronheim Mortgage has arranged a $124.1 million loan for the refinancing of Grove Pointe Apartments, a 458-unit multifamily complex located at 100 Christopher Columbus Drive in Jersey City. Built in 2007, the 29-story building houses 19,675 square feet of ground-floor retail space and 535 parking spaces. The unit mix consists of 34 studios, 274 one-bedroom apartments and 150 two-bedroom residences. Amenities include a pool, fitness center, billiards room, lounge and a children’s playroom. The sponsor, a partnership between Kushner Real Estate Group and National Real Estate Investors, will use a portion of the proceeds to fund capital improvements. Andrew Stewart, Dev Morris and Allison Villamagna of Cronheim Mortgage arranged the debt through an undisclosed life insurance company.
BEACON, N.Y. — KeyBank has provided $41.2 million in financing for Tompkins Terrace, a 193-unit affordable housing complex in Beacon, about 65 north of Manhattan. The financing consists of $17.1 million in Low-Income Housing Tax Credit equity and a $24.1 million Fannie Mae permanent loan. The borrower, New York City-based Related Affordable, will use the proceeds to acquire the property, fund capital improvements and preserve the affordability status. Tompkins Terrace was originally built on 16.3 acres in 1973 and last renovated in 2008. Units are reserved for households earning 50 to 60 percent or less of the area median income.
SYOSSET, N.Y. — California-based boutique advisory firm Talonvest Capital has arranged a $13.8 million construction loan for a self-storage facility in the Long Island community of Syosset. The facility will consist of 1,025 climate-controlled units and 86 drive-up units for a total of 103,440 net rentable square feet. John Chase, Kim Bishop, Ivan Viramontes and Lauren Maehler of Talonvest arranged the loan, which carried a five-year term and four years of interest-only payments, through an undisclosed commercial bank. The borrower and developer is Barone Management. Delivery is slated for late 2024.
