Weiss, Sznajderman and Tio of RM Capital broker $11 million construction financing

RM Capital Management LLC (www.rmcapgroup.com) closed an $11 million construction loan for the development of 321-325 Pacific St. in the Boerum Hill neighborhood into four-single family townhomes. The 18-month, non-recourse construction loan, provided by Emerald Creek Capital, represented 90% of the total project costs and enabled the borrower to take advantage of the rapidly appreciating residential market. RM Capital Management director Steven Weiss and co-managing directors Marc Sznajderman and Romano Tio executed the transaction on behalf of the local developer Phil Mendlow, who has developed his own projects for over 30 years. He also serves as a senior vice president of development for Bluerock Real Estate, where he is completing development of The Charles project on the Upper East Side. "We demonstrated to the lender that the land considerably appreciated since the developer took control of the property," said Sznajderman. "And the lender gave us credit for that in the financing structure." "The structure allowed the developer to accomplish the dual goals of capturing the upside in the project without requiring additional developer equity," said Sznajderman. The townhomes are expected to set a new standard for the area market, with garages, elevators and bespoke design by Martin Brudnizki Design Studio. Completion is anticipated in 2015. "This financing demonstrates RM Capital's ability to deliver custom solutions for our client's real estate capital requirements," added Weiss. RM Capital is a private real estate investment banking and merchant banking firm based in New York. Its principals have extensive and diverse backgrounds including hedge fund, advisory and principal investment experience, and have acted as a principal or agent on transactions with a combined value of over $5 billion.