NEW YORK CITY — Carlton Group has closed a $42 million construction loan and joint venture equity investment for a new condominium project in the Flatiron District of Manhattan. The financing will enable the developer, Gale International, to build a 37,000-square-foot condominium building, located at 21 West 20th St. The development includes 13 full-floor units, including four penthouse units with 100 feet of frontage and more than 4,000 square feet of private terrace space. Carlton arranged the construction loan and joint venture equity through a balance sheet lender at LIBOR plus 325 basis points and an equity joint venture participant, which includes an overseas investor. The development marks Gale International’s first condominium project in Manhattan.
Northeast
KING OF PRUSSIA, PA. — Beech Street Capital has provided a $34 million, 10-year loan for the refinancing of Valley Forge Towers North, a 242-unit, 15-story apartment building in King of Prussia. Galman Group, which owns and manages more than 7,000 apartment communities and condominiums, was the borrower. The property includes one-, two- and three-bedroom units ranging in size from 1,079 square feet to more than 1,600 square feet. The property also features 11,000 square feet of office space, 19,000 square feet of retail, 8,000 square feet of commercial storage and 178 garage parking spaces. The fixed-rate loan includes a 30-year amortization schedule. Brian Sykes in Beech Street’s Boston office originated the transaction.
Metropolitan Boston continues to enjoy robust economic expansion and exceptionally strong real estate fundamentals. Strength in local housing prices, wages and consumer confidence demonstrated during 2013, coupled with low inflation and increases in consumer spending, will enable the economy’s growth to continue well into 2014 and beyond. With an unemployment rate among the strongest in the U.S. (7.1 percent as of November 2013), Massachusetts continues to thrive due to the presence of world-class educational, medical and research institutions. State GDP grew an estimated 3.5 percent in the third quarter of 2013, according to MassBenchmarks, following a revised 1.7 percent increase in the second quarter of the year. The publication forecasts 3.4 percent growth in state GDP from October through March. Commercial real estate saw falling vacancies, rising rents and new construction across most property types. In 2013, 5.5 million square feet of new inventory was delivered, including 3.1 million square feet of multifamily residential and 1.9 million square feet of office. More than 16 million square feet is under construction — three times greater than the previous five-year average in metro Boston — including 7 million square feet of multifamily residential, 6.9 million square feet of office and 2.2 million …
NEW YORK CITY — RKF has arranged the $60 million sale of a 322,390-square-foot industrial property located at 47-25 34th St. in Long Island City. RKF previously represented the owner of the building 13 months ago when they acquired the property for $40.7 million. In this latest transaction, Jeff Fishman of RKF represented the seller of the building, a pair of tenants-in-common entities managed by BLDG Associates Inc. Empire Leasing and Development Inc. represented the buyer, Brickman 34th St LIC LLC. The three-story building is located between Queens Boulevard and the Long Island Expressway.
NEW YORK CITY — Mission Capital Advisors has arranged $33 million in financing on behalf of New York-based investment and management company Icon Realty Management. The financing, a combination of CMBS and mezzanine, was arranged to refinance The GEM Hotel Chelsea, an 81-key, upscale boutique hotel located at 300 West 22nd St. in Manhattan. Gemini Real Estate Advisors manages the hotel. Jordan Ray, Jason Cohen and Ari Hirt of Mission Capital secured the five-year loan. The first-mortgage financing includes a CMBS loan with a 30-year amortization schedule and interest-only mezzanine financing. In addition to 81 hotel rooms, the five-story building features retail space leased to Forager’s Counter, a high-end gourmet market.
PHILADELPHIA — Marcus & Millichap Capital Corp. (MMCC) has arranged a $27 million loan for the refinancing of a seven-property retail portfolio in Philadelphia. The 10-year loan includes a 3.6 percent fixed interest rate for the first five years and a 30-year amortization schedule. After five years, the rate will reset at 180 basis points over the five-year Federal Home Loan Bank rate. John Banas and Kris Wood in MMCC’s Philadelphia office arranged the loan.
BOSTON — JLL’s project and development services group is providing project management services for the YMCA of Greater Boston’s expansion at its West Roxbury facility. The $15 million project will update the 61-year-old facility with the demolition of 16,000 square feet from an existing building and the construction of a 24,000-square-foot addition. The Boston Redevelopment Authority recently approved the project, which is being designed by architect LINEA 5 Inc., with electrical engineer ZAX Engineering and mechanical, electrical, plumbing and fire protection engineer VAV International. Construction is scheduled to being this spring with a completion date set for summer 2015.
NEW YORK CITY — GFI Realty Services Inc. has arranged the $5.2 million sale of 869 and 913 Thomas S. Boyland Street, two four-story apartment buildings located in the East New York section of Brooklyn. The multifamily properties feature a total of 51 rental units and a cell phone tower. GFI Realty represented the buyer, Coney Realty, and the seller in the transaction. The properties traded for approximately eight times the rent. The two buildings were constructed in 1930 and are located near the Rockaway and New Lots avenues subway stations.
CHERRY HILL, N.J. — Meridian Capital Group LLC has arranged a $31 million mortgage for the refinancing of Dwell Cherry Hill Apartments, a 233-unit multifamily property located in Cherry Hill. A regional balance sheet lender provided the seven-year loan, which includes a fixed interest rate of 3.5 percent with a five-year option. David Cohen and Max Beyderman of Meridian arranged the loan for The Klein Co. Dwell Cherry Hill Apartments is located at 1982 Marlton Pike East.
NEW YORK CITY — The Chetrit Group and Clipper Equity will launch leasing this spring for 123 on the Park, a new seven-story, 119-unit rental development, located in the Prospect Park South area of Brooklyn. Phase I of 123 on the Park, located at 123 Parkside Ave., is a rehabilitation of the former Brooklyn Hospital Center with architecture by Karl Fisher & Associates. The building features a mix of studios, one-, two- and three-bedroom apartments with interiors designed by Andres Escobar. Monthly rents begin at $1,999 for a studio, $2,299 for a one-bedroom and $3,800 for a two-bedroom apartment.