Berko of Berko & Associates negotiates $12.5 million construction loan; financing secured for developer, PSG Construction

According to the Berko & Associates Capital Markets team, they have successfully completed a $12.5 million construction financing. The loan was secured by an eight-story 116,000 s/f building located at 198 Varet St. in the Williamsburg neighborhood. The property is constructed with 15,000 s/f floor plates. The developer, PSG Construction, will lease the building to the Williamsburg Charter High School for 30 years. Joe Berko of Berko & Associates negotiated the loan terms on behalf of PSG Construction. According to Berko, this is one of the most challenging financing transactions the firm has negotiated in the past 12 months. "Not easy to source a lender that would agree to take on construction risk and feel comfortable with a single tenant who is a non-for-profit organization" said Berko. "But we believed in the project and we felt that we are representing an exceptionally strong principal with a solid track record. The property is a state of the art asset leased out for the next 30 years to a financially viable tenant to occupy the space when the work is complete."