Ariel Property Advisors’ Capital Services Division arranges $16.7 million in financing

 

 

 

New York, NY Ariel Property Advisors’ Capital Services Division has arranged $16.7 million in financing for five transactions. The funding was highlighted by a bank construction loan that utilized Affordable New York, a developer tax incentive. 

Led by Ariel’s Paul McCormick, senior vice president of investment sales and capital services, and directors, Matt Dzbanek and Matt Swerdlow, the division arranged financing for 13 properties, which included mixed-use, multifamily, and retail buildings. 

• $6.5 million refinancing loan in Bedford-Stuyvesant: A 5-year, 75% LTV, non-recourse, cash-out loan with a fixed-rate of 4%.

• $6 million in financing for a portfolio in Bedford-Stuyvesant, Bushwick and Prospect Lefferts Gardens: The borrower, a foreign national, received a five-year term, with 30-year amortization and 75% LTV. 

• A $1.8 million ground-up construction loan for an eight-unit rental building in Brooklyn was provided by an out-of-state balance sheet lender. The Division played a pivotal role in educating the lender on the specific details of Affordable New York, which was just ratified 2-months prior to the loan’s submission. “This was one of the first construction loans underwritten with the lower tax burden derived from Affordable New York’s popular selection of Option C,” Swerdlow said. “In East Flatbush, the borrower is earning a 100% tax emption for 35-years without losing any rent potential because the market rent is equal to the affordable thresholds set by the city.”  

• A $1 million cash-out refinance loan for a 9-unit mixed-use property. The loan featured a fixed rate of 3.375% for a 3-year term with 30 years of amortization through a balance sheet lender. 

• A $1.4 million cash-out refinance loan on a seven-unit rental property in Stamford, Conn. All tenants were part of the Section 8 voucher program, with the non-recourse loan featuring a flexible prepayment penalty should the borrower decide to sell.