Meridian Capital Group, LLC, one of the leading national commercial real estate finance and advisory firms, negotiated a $44.8 million loan and $15.5 million in joint-venture equity for the construction of a multifamily property in the Astoria area of the borough.
The three-year interest-only loan, provided by CIT Real Estate Finance, a middle-market balance sheet lender, features a LIBOR-based floating-rate and two one-year extension options. The $15.5 million of joint-venture equity was provided by Glenmont Capital Management. These transactions were negotiated by Meridian Capital Group managing director, Tal Bar-Or, who is based in the company's New York City headquarters.
The site was acquired in an off-market transaction and is currently an operating parking lot that has been under continuous ownership and management for nearly 35 years. The site will be delivered vacant and the sponsor plans to build a 143,320 gross s/f structure that will include parking, retail, storage, a community facility and 114 rental apartments. The retail component is supported by the nearly 325 ft. of frontage along 31st St.
The building will feature a 24-hour doorman, sound-proof construction, on-site parking, a laundry room, bicycle storage, a media room, a fitness and yoga room, grocery storage, tenant storage as well as active and passive roof decks for grilling, sunbathing and lounging.
Additionally, one- and two-bedroom units will have washers and dryers.
"We are pleased to have arranged non-recourse construction financing at 70% loan-to-cost for our clients. With a new development team, developing location and significant retail component, it took a well-informed lender to understand the merits of this project and we are fortunate to have been able to work with Matt Galligan, president of CIT Real Estate Finance, to cultivate what we believe will be a long-lasting relationship between the sponsors, CIT and Meridian," said Bar-Or. "Finding the appropriate joint-venture equity partner requires balancing a number of factors and in this case those included the new construction aspect of the project, the developing location and the fact that the general partner was a new partnership. Meridian was able to quickly convey the strengths of this deal to the market and Glenmont recognized the opportunity to be the capital partner on what will become a marquis project in the Astoria/Long Island City area," he added.
Bar-Or continued, "We were able to bring the full capital stack together for our clients and Meridian will continue to grow its equity capital markets practice in 2015. The ability to procure equity and debt in tandem has been well received by our clients and further enhances our ability to add value as an advisor." Tags: