DALLAS — Revere Capital, a Dallas-based lender, has announced the establishment of Revere Credit Opportunities Fund III LP, a $350 million fund for the origination and acquisition of commercial real estate debt. Revere Capital’s third fund of this type, it is targeted to originate two-to five-year loans for investors and developers of all property types, excluding land. Loans from the fund are expected to range from $3 million to $30 million.
WEST PALM BEACH, FLA. — Berkadia has arranged a $22.5 million bridge loan for the repositioning of the former Bank of America office building located at 625 N. Flagler Drive in West Palm Beach. The borrowers, led by FRI Investors, purchased the 110,000-square-foot, 10-story asset last year in an all-cash transaction with the intent to convert the property into a medical office building. Bank of America vacated its 40,000-square-foot lease at the property late last year. The building is currently 50 percent leased to tenants including Mount Sinai Hospital and Jupiter Medical Center. Charles Foschini and Christopher Apone of Berkadia’s South Florida office arranged the three-year loan with an adjustable interest rate through PCCP LLP.
HOBOKEN, N.J. — Gary Cohen of NorthMarq Capital’s New Jersey-based office has secured the $80 million refinancing of a portfolio of multifamily properties containing 519 total units. The five properties are located throughout Hoboken. The 12-year loan includes a 25-year amortization schedule. NorthMarq arranged financing for the borrower, Applied Housing Management, through its correspondent relationship with a life insurance company.
NORWALK, CONN. — KeyBank Real Estate Capital has provided $12.4 million in FHA financing for Cedar Court Apartments, a seniors housing community in Norwalk. The 91-unit property will designate at least 40 percent of its units for tenants earning below 60 percent of the area median income. In addition, the property will utilize Section 8 Housing Assistance Payments contract that will provide subsidized rents for 45 units. Jeff Rodman of Key’s commercial mortgage group and Kelly Frank of Key’s community development lending and investment group arranged the construction financing, which will be used to rehabilitate the property.
HOUSTON — A partnership between Houston-based developer Midway and Dallas-based investment advisor firm L&B Realty Advisors has received $65 million in interim financing for CityCentre, a mixed-use property in west Houston. Located at 800 Town and Country Blvd., the property, which was developed in 2007, includes a total of 307,509 square feet of retail, hotel, office and residential space. Scott Galloway and Colby Mueck of HFF arranged the financing through JPMorgan and First Tennessee Bank.
RICHTON PARK, ILL. — The Philipsborn Co. has secured a $2.2 million loan for the refinancing of Sauk Trail Plaza in Richton Park, about 35 miles south of Chicago. The 30,267-square-foot center is located on the southwest corner of Sauk Trail and Central Park avenues. Constructed in phases during the 1960s and 1970s, the center is situated on 2.6 acres. The property is 98 percent leased and is anchored by Save-A-Lot. The fixed-rate loan was used to refinance the outstanding debt and provide funds for capital reserves. David Kubert of Philipsborn negotiated the transaction on behalf of all parties. ICA Investment Advisors provided the loan. The borrower was a limited liability company.
MINNEAPOLIS — CBRE has arranged a $1.3 million loan for the acquisition of a 20-unit apartment property in the Minneapolis neighborhood of Ventura Village. The two-story building is located at 1828 Park Ave. and consists of one-, two- and three-bedroom units. Originally built in 1916, the property was fully occupied at the time of closing. The 10-year loan was obtained through Freddie Mac’s small balance loan program and features a 30-year amortization schedule. Ben Bastian and Mark Roos of CBRE represented the borrower, Lotus Acres LLC, an affiliate of EIG Property Management.
Eastern Consolidated Arranges $120M in Construction Financing for New Hyatt Place Hotel in Manhattan
NEW YORK CITY — Eastern Consolidated has secured a $210 million debt and equity package to finance the construction of a new, 180,000-square-foot Hyatt Place Hotel in Manhattan’s Garment District. The financing consists of a $95 million first-mortgage loan from Bank of the Ozarks and a $25 million preferred equity investment by Square Mile Capital Management. Adam Hakim and James Murad of Eastern Consolidated arranged the financing on behalf of the McSam Hotel Group, a New York-based hotel development firm. “With a revitalized theater district, thriving hospitality industry and constantly improving retail, the Times Square area is a magnet for tourists,” Hakim said. “New York City hosted a record 60.3 million visitors last year, which boosted the city’s hotel occupancy rate to an average of 90.1 percent, and more visitors are expected this year.” The 25-story, 520-key hotel will be located at 350 W. 39th St., in between Eighth and Ninth avenues in the Hudson Yards submarket. The chairman of McSam Hotel Group, Sam Chang, purchased the site in 2015 for $112 million; terms of sale allow him to develop up to 300,000 square feet of the property, according to The Real Deal. Consequently, plans for a 123,000-square-foot, 21-story, 380-room hotel …
ALLEN, TEXAS — BMC Capital has secured an $18 million construction loan on behalf of an unspecified developer for a 125,000-square-foot, five-story office property in Allen, a city slightly north of the Dallas-Fort Worth metroplex. The three-year loan has a floating interest rate and a 70 percent loan-to-cost ratio. Delivery of the Class A building is slated for the first quarter of 2018.
DELRAY BEACH, FLA. — Walker & Dunlop has structured a $35.8 million Freddie Mac Immediate Delivery Tax Exempt Loan (TEL) for Smith & Henzy Advisory Group. The funds will be used to acquire and renovate Lake Delray Apartments, an affordable seniors housing community in Delray Beach in Palm Beach County. The community features 404 units, with assisted payment vouchers available for 193 units and the rest reserved for seniors making 60 percent of the area median income. The Delray Housing Group manages the 14-acre property. The borrower will use $14.3 million of the financing to replace kitchens, baths, windows, flooring and mechanical systems. Enhancements will be made to the amenity spaces as well, including renovations to the clubhouse and pool areas and the addition of a 1,200-square-foot gym, yoga room, library with computer rooms, barbeque area and outdoor LED lighting. The loan was originally structured as HUD tax-exempt bonds, then later converted to Freddie Mac to acquire more flexible terms. The 17-year acquisition loan features two years of interest-only payments followed by a 35-year amortization schedule. The Palm Beach Housing Finance Authority provided the capital. Frank Baldasare led the Walker & Dunlop origination team.