NEW YORK CITY — CapStack Partners has arranged a $19 million loan to refinance The Ravel Hotel in Long Island City. Located at 8-08 Queens Plaza, the 113-room hotel also includes 17,000 square feet of event space, a redesigned rooftop restaurant, pool club and outdoor beer garden. CapStack’s investment banking group worked on behalf of the undisclosed borrower to secure the 10-year, fixed-rate loan through an undisclosed lender. Loan proceeds were used to refinance construction costs
NEW YORK CITY — Cushman & Wakefield has arranged a $13.4 million bridge loan for two adjacent development sites in the Jamaica neighborhood of Queens. Located at 89-25 and 89-26 162nd St., the sites total approximately 237,000 square feet. Preston Flammang, Jessica Ke and Anthony D’Amelio of Cushman and Wakefield represented the borrower, Great Atlantic Construction, in the transaction. The lender was Lightstone Capital Markets. Terms of the financing were not disclosed.
FORT WORTH, TEXAS — Dallas-based financial intermediary Pioneer Realty Capital LLC has arranged a $7 million loan for the refinancing of an industrial building in Fort Worth occupied by Apex Tires, which also owns the building. Proceeds from the loan were used to finance existing construction debt that had gone into default and to cover costs of relocating. The direct lender was not disclosed.
TACOMA, WASH. — 3650 REIT has facilitated a $78 million construction loan for Yareton Investment. The borrower plans to use the loan to complete the development of a full-service Marriott hotel in Tacoma. Now 30 percent complete, the 22-story hotel will feature 304 guest rooms, 9,000 square feet of event space, a 10,000-square-foot ballroom and direct connection to the Greater Tacoma Convention Center. With this loan, Yareton Investment is able to advance the development of the hotel component of its broader mixed-use project that includes a residential tower. Matt Fisher of JS Coats Capital arranged the financing.
CHICKASHA, OKLA. — Arbor Realty Trust Inc. (NYSE: ABR) has provided a $1.7 million Freddie Mac loan for the refinancing of Winding Creek Apartments, a 50-unit multifamily asset in Chickasha, a southwestern suburb of Oklahoma City. The property was built in 1974 on eight acres. Eric Regenbogen of Arbor Realty originated the loan through Freddie Mac’s Small Balance Loan program on behalf of the undisclosed borrower.
ELIZABETH, N.J. — Valley National Bank has provided a $6.8 million acquisition loan for a 22,000-square-foot apartment building in Elizabeth. Located at 737-745 N. Broad St., the property was built in 2017 and consists of a mix of one- and two-bedroom units. Nate Lowy of Juniper Capital Group represented both the undisclosed borrower and Valley National Bank in the transaction. Terms of the financing included a five-year loan at a 4.25 percent interest rate.
NEW HAVEN, CONN. — Axiom Capital Corp. has arranged a $1.6 million loan to refinance a 65-unit multifamily property in New Haven. The 12-building complex was constructed in 1982 and renovated in 2001. Amenities include washer/dryer hookups, separate entrances, private basements, fenced yards and a playground. Axiom Capital secured a five-year, fixed-rate loan on behalf of the undisclosed borrower. The lender was also undisclosed.
LA JOLLA, CALIF. — HFF has directed the sale of Regents La Jolla, a mid-rise multifamily property located at 9253 Regents Road in La Jolla. LaSalle Investment Management sold the property to Raintree Partners for an undisclosed price, but free and clear of existing financing. Charles Halladay and Chris Collins of HFF worked on behalf of the new owner to secure 10-year, fixed-rate financing with Pacific Life Insurance Co. Hunter Combs and Sean Deasy, also of HFF, represented the seller in the transaction. Completed in 2000, Regents La Jolla consists of nine four-story buildings and a single-story cabana building that feature a total of 333 apartments in a mix of one- and two-bedroom units averaging 966 square feet. Situated on 8.5 acres, the community features two swimming pools, a fitness center, sports lounge, movie theatre and professional entertaining kitchen. At the time of sale, the asset was 96 percent occupied. Additionally, the property is part of a 574-home development that includes 241 condominium units, which were not included in the sale.
BIG RAPIDS, MICH. — Hunt Real Estate Capital has provided a $15.5 million Fannie Mae loan for the refinancing of Campus Creek Cottages in Big Rapids. The 368-bed student housing property is comprised of several two-story buildings. Phase I opened in April 2017 and Phase II is scheduled to open in August. The borrower, GFJ BR Cottages LLC, developed the property. Ben Greemann of Greemann Capital arranged the loan. The property mainly serves students at Ferris State University.
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TD Bank: Construction Delays have Bolstered the Multifamily Market
It may sound counterintuitive, but Gregg Gerken, head of U.S. commercial real estate at TD Bank, believes some of the challenges the multifamily development market has faced have actually benefited the market. He specifically references labor shortages and construction delays. There were concerns in some areas that too much product might come online too fast, hampering absorption and rent growth. But the recent speedbumps have allowed the pipeline to even out a bit, staggering the delivery of new units and preventing overbuilding. Demand still outpaces supply in many markets, which has led to average vacancy rates of around 5 percent and healthy rent growth. Both developers and renters can look forward to new product delivering at a steady pace in 2019. Watch the video to hear takeaways from MBA CREF and 2019 predictions from Gerken.