Hudson Realty Capital provides $14.5 million construction loan for SoHo development site

Hudson Realty Capital LLC has provided a $14.5 million construction loan for a SoHo development site. Loan proceeds are being utilized for ground-up construction of an eight-story 24,274 s/f residential building with community space. "This loan met the complex multi-tranche needs of this experienced real estate owner/operator to facilitate construction and completion of the fully entitled property," said Spencer Garfield, managing director, originations. "The business plan includes stabilizing the upper floor multi-family units and leasing the community space, upon completion of construction." Located north of the Broome St. and Sixth Ave. intersection, the elevator property will feature a total of 12 two-bedroom units across 16,870 rentable s/f, with an average unit size of 1,406 s/f. The top two floors will be set back from the street with large roof terraces and balconies for the rear-facing units. Additionally, the building will include 7,404 s/f of net community space on the basement, first and second-floor levels, which is ideal for a school. The residential units will have their own lobby. The SoHo neighborhood is home to art galleries, restaurants, boutiques and destination shopping. Predominantly comprised of lofts converted from 19th century warehouses and factories, there has been a rise in new luxury rentals and condominium developments during the last 10 years. "SoHo continues to be one of the hottest New York City residential neighborhoods where there is high demand for new construction and new luxury product," said Garfield, who said Hudson is focusing on these types of middle-market transitional assets requiring debt investments in the $5 million to $50 million per-asset range. Currently operating out of its fifth fund, Hudson is targeting performing and non-performing debt acquisitions; financing for borrower discounted payoffs, third-party debt acquisitions and debtors in possession; new loan originations and good bank/bad bank recapitalizations. Hudson also is concentrating on large loan-portfolio acquisitions and asset management activities. Established as a Minority-Owned Business Enterprise (MBE) and headquartered in New York City, Hudson has regional offices in Portland, Maine and Fort Myers, Florida. Since the formation of its initial two funds in 2003, the company has closed more than $3.5 billion in transactions. Hudson also has been named among the New York area's largest minority-owned companies as well as one of the Top 25 lenders nationally.