NEW YORK CITY — Ariel Property Advisors has arranged a $4.7 million loan for the refinancing of a 42-unit multifamily building located at 500 W. 111th St. in Manhattan’s Morningside Heights neighborhood. Matt Swerdlow and Matt Dzbanek of Ariel Property Advisors placed the debt, which was structured with a fixed interest rate of 10 percent for three years and a 40-year amortization schedule, through an undisclosed New Jersey bank. The undisclosed borrower will use a portion of the proceeds to fund capital improvements.
SEATTLE — Taylor Street Capital Partners has arranged $3.5 million in cash-out refinancing for an apartment community located in downtown Seattle. Taylor Street secured a non-recourse, 10-year, fixed-rate note with all reserve requirements waived for the out-of-state borrowers. The borrowers own the 23-unit asset and were looking to replace a previous note with a long-term, low-interest-rate solution to maximize cash flow and provide funding for additional capital improvements at the property.
Ralph Cram, President of Envoy Net Lease Partners, LLC, is seeing dramatic change in the net lease space in 2021: in the past couple months he’s seen cap rates with 25 to 35 basis point drops on active deals, increased 1031 exchange activity and robust interest in net-lease properties. “What we’ve really seen in the last six months is the demand for investment-grade, net-lease properties has skyrocketed — partly because people aren’t buying nonessential or non-investment-grade tenants.” There is a supply constraint though: with many 2020 projects delayed, Cram anticipates 12 months before supply can reach the market — making for a tight market. Finance criteria for net lease clients, construction loan programs, development risks, outlining the process for lending overall and 2021 goals are concepts covered in this video interview for Finance Insight. This article is posted as part of REBusinessOnline’s Finance Insight series. Click here to subscribe to the Finance Insight newsletter, a four-part newsletter series, followed by video interviews delivered to your inbox in March.
PALM BEACH GARDENS, FLA. — Cushman & Wakefield has secured a $25.4 million loan to refinance Corporate Center at the Gardens located in Palm Beach Gardens. Jason Hochman, Mike Ciadella and Ron Granite of Cushman & Wakefield secured the new long-term, non-recourse loan through BankUnited on behalf of the owners, Alchemy-ABR Investment Partners and Breakers Capital Partners. Gavin Loughlin and John Litan at Greenberg Traurig served as Alchemy-ABR-BCP’s legal counsel in the refinancing. Located at 4200-4400 Northcorp Parkway, the 114,123-square-foot Corporate Center at the Gardens has been nearly 100 percent occupied since Alchemy-ABR-BCP’s acquisition. The building serves as the corporate headquarters for Garden of Life – Nestle, Olympus Insurance and The Weiss Group. Additionally, the property is the only South Florida location for Oxford Global Resources. Alchemy-ABR Investment Partners, based in New York City, is a fully integrated real estate investment and development company.
SOUTHLAKE, TEXAS — Locally based financial intermediary Terrydale Capital has arranged a $1.7 million acquisition loan for a retail property in the Fort Worth suburb of Southlake. Driver’s Edge Auto Repair occupies the single-tenant property. Quinn Conway of Terrydale Capital arranged the loan, which was structured with a fixed 3.25 percent interest rate for five years and a 25-year amortization schedule, through an undisclosed bank. The borrower was also undisclosed.
CLEVELAND — KeyBank has structured $13 million in construction financing for Via Sana, a 72-unit affordable housing project in Cleveland. The NRP Group LLC, The MetroHealth System and CCH Development Corp. are serving as developers. Via Sana is part of a $60 million mixed-use project being spearheaded by MetroHealth in the city’s Clark-Fulton neighborhood. Rents at the property will be offered at 15 to 75 percent below market rents. Project-based vouchers will be used for eight of the units. In addition to residences, Via Sana will include more than 5,000 square feet of commercial space as well as conference rooms and classrooms reserved for MetroHealth’s Economic Opportunity Center.
SALEM, ORE. — Live Oak Bank has provided a $28.5 million loan for the construction of a 142-unit independent living expansion in Salem, approximately 45 miles south of Portland. The borrower is Mosaic Management. The project will be Phase II of a larger campus, which already includes a 138-unit assisted living and memory care building that was completed in May 2019. The expansion will total 147,000 square feet on an 8.9-acre plot.
Affordable HousingBuild-to-RentFinance InsightLoansMidwestMultifamilyNortheastSingle-Family RentalSoutheastTexasVideoWestern
NorthMarq: 2021 Capital Markets Environment
NorthMarq executives recently connected with nearly 50 correspondent lenders and more than 150 debt experts in an effort to better understand the capital markets environment in 2021 and to share information about opportunities within the market. Jeff Erxleben, executive vice president and executive managing director, Debt & Equity, with NorthMarq, shares some of the insights from those conversations, and he discusses changes in the market, ranging from new loan programs by life companies to the impact of FHA/HUD’s new MAP guide implemented this month. He also talks about the growing interest in single-family rental and build-for-rent properties, and he mentions trends in affordable housing development and value-add strategy for buyers of affordable and workforce housing. “Overall, we’ve seen strong volume at the beginning of 2021, and I would expect that to continue throughout the year as the liquidity in the debt and equity markets remains strong,” Erxleben notes. “Transaction volume is up; there is a large sentiment that there is pent-up demand to get deals done.” He adds, “We’re seeing the fastest rebound and largest amount of activity in high-growth, business-friendly Sunbelt states — Texas, Florida, Arizona and the Carolinas. Other states, like California, where activity has been more …
LOS ANGELES — JLL Capital Markets has arranged a $140 million credit facility with the ability to expand up to $215 million for Los Angeles-based InSite Property Group. The facility will fund InSite’s development pipeline of Class A self-storage facilities across the nation. ACORE Capital provided the floating-rate loan, which was arranged by Bill Fishel, Matt Stewart and Chad Morgan of JLL Capital Markets, along with Brian Somoza, Steve Mellon and Griffin Guthneck of JLL’s national self-storage team. The financing is part of the InSite’s ongoing acquisition, development and repositioning strategy that includes a pipeline of 40 projects totaling nearly 5 million square feet of core, Class A product in infill markets across the United States. The company operates facilities under the Secure Space Self Storage brand.
DURHAM, N.C. — Asia Capital Real Estate (ACRE), a global real estate private equity firm, has provided a $34 million bridge loan for a mixed-use community in Durham known as One City Center. Provided through ACRE’s latest debt fund ACRE Credit, the loan will serve to refinance existing debt related to the project’s construction. The two-year financing carries a loan-to-value ratio (LTV) of 66.4 percent, with options for two single-year extensions. Roger Edwards of JLL originated the loan on behalf of the borrower, Austin Lawrence Partners (ALP). Located at 110 Corcoran St., One City Center is a Class A, 28-story tower featuring 109 market-rate apartments and 30 owner-occupied condominiums, which were 88.1 percent occupied as of the building’s opening in January 2021. The building, built and delivered by ALP, also includes 130,000 square feet of office space and 22,000 square feet of ground-floor retail owned by Virginia Beach, Va.-based Armada Hoffler. Community amenities include a rooftop pool, hot tub, rooftop lounge with kitchen, fitness center, a sixth floor resident park with seating areas, grills and a fire pit, a private dog run and secure parking garage with 122 spaces. Individual units include floor-to-ceiling glass windows, nine-plus-foot ceilings, stainless steel appliances, …