Ariel Property Advisors closes $11.8 million condo inventory loan for 20-unit new construction

Manhattan, NY The Capital Services Group at Ariel Property Advisors (Ariel) has arranged an $11.8 million condominium inventory loan for a 20-unit newly constructed residential condo project.

An Ariel team led by Matt Swerdlow, senior director; Anthony Priest, director; and David Khukashvilli, senior associate, arranged the financing on behalf of the borrower.

The 9.5% interest-only loan featured an 18-month term at 70% loan-to-value. The loan allowed the borrower to cash out at 20% above the bank construction loan, unlock funds, and secure additional proceeds and reserves to complete the condo development, providing an 18-month runway to bring units to market and manage the sellout process with greater control.

“This was a situation that required both speed and precision in execution,” said Swerdlow. “By restructuring the capital stack and recalibrating the financing, we were able to position the asset for a successful sellout while giving the borrower the flexibility to execute on the timeline.”

The transaction highlights continued activity in the condominium inventory loan market in New York City, particularly for well-positioned assets in supply-constrained submarkets. Lenders continue to provide attractive terms that support sponsors in completing projects and bringing units to market on an optimized delivery schedule.