Ariel Property Advisors’ arranges financing for eight loans for $25.8 million

Manhattan, NY Ariel Property Advisors’ Capital Services Group has arranged another $25.8 million in financing across eight loans, securing construction, acquisition and refinancing capital throughout New York City, New Jersey and Connecticut.

A capital services team that included Matt Swerdlow, senior director, and directors Anthony Priest, Nicholas Campoli and Steve Trow, arranged the following transactions:

• A $4.4 million non-recourse construction loan with a debt fund for a four-unit mixed-use condominium development in Boerum Hill. The loan featured a 30-month term and an 8.5% interest-rate floor. It was the second construction loan Ariel has structured between the borrowers and this lender. The 5,290 s/f project will feature a mix of residential condominium and commercial space.

• A $4.33 million refinance loan for a warehouse in Patterson, NJ. The five-year loan with a credit union featured a rate of 200 bps over the five-year treasury and 75% LTV. The loan returned 109% of the sponsor’s original cost basis.

• A $3.605 million cash out refinance loan for a 10-unit, 6,100 s/f multifamily building on the Upper West Side (shown). Terms for the non-recourse, five-year bank loan included a spread of 1.75% over the five-year treasury, one year interest only and 30-year amortization.

• A $3.535 million refinance loan for a free market 36-unit multifamily property in New Haven, Conn. (shown). Terms of the bank loan included an interest rate of 6.65% and 70% LTV. 

• A $3.3 million credit union loan for an owner-user to acquire a 4,000 s/f commercial property in Woodside, Queens. Key terms included a 10-year term, 6.13% interest rate, and 70% LTV. 

• A $3.25 million loan with a debt fund for the acquisition and renovation of a 10-unit, 5,360 s/f property in Brooklyn Heights. The two-year bridge loan featured 75% LTC. 

•A $1.85 million acquisition loan for a 36-unit multifamily building in The Bronx. Approximately 75% of the property’s apartments are rent stabilized. The five-year bank loan featured a 6.4% fixed interest rate and a 70% loan-to-value ratio.

• A $1.49 million refinance loan for a 4,830 s/f, three-unit multifamily in the Prospect Lefferts Gardens neighborhood of Brooklyn. Terms of the five-year loan with a private lender included a 6.75% interest rate and 68% LTV. The loan featured a 10-year fixed rate with full-term interest-only and a flexible prepayment penalty.

“Lenders remain highly selective, making it essential to understand each asset’s business plan and identify the right capital source,” said Swerdlow. “For the Boerum Hill transaction, our familiarity with the project and the parties allowed us to arrange a second construction loan between the borrowers and lender. In the Bronx, we secured 70% leverage for an acquisition involving a significant rent-stabilized component, a financing structure that has become increasingly difficult to achieve in today’s market.”