Kurland of CBRE Capital Markets secures $2 million non-recourse loan

Vice president Keith Kurland of CBRE Capital Markets in New York City recently arranged a $2 million fixed rate first-mortgage to refinance the loan on 1275 Third Ave. and 314 East 70th St. The non-recourse loan was arranged by a regional bank, with a 5-year term on a 30-year amortization schedule at a fixed rate of 6.125%. "This was a refinance of a maturing CMBS loan originated back in 1999. The client, with whom the buildings have been in the family for decades, chose to maintain very low-leverage on both properties while releasing a third asset that was cross-collateralized by the original CMBS loan," Kurland said. "The third property, also located on the Upper East Side, was intentionally left unencumbered while the borrower decides on final plans for a renovation of the asset." Both assets are located in the prime neighborhood of Lenox Hill on the Upper East Side. 1275 Third Ave. is situated on the Northeast corner of 73rd St., and consists of a 5-story 9-unit residential rental building anchored by ground floor retail tenant, Scoop. The building was 100% occupied at closing and has recently signed a lease renewal with Scoop a long-term tenant in the building and its two adjacent properties. 314 East 70th St. is mid-block on the south side of the street, positioned in between busy 1st and 2nd Aves. The 5-story, 15-unit residential rental building is 97% occupied and includes a ground floor retail tenant, Shabu-Shabu, a popular Japanese restaurant in the area. The properties are surrounded by a well-established residential neighborhood with many local amenities available including fitness clubs, dining and shopping. Providing excellent access to public transportation, the area is serviced by the convenient 6 subway line and multiple bus routes up and down the Avenues and the Crosstown 72nd St. bus. The location is ideal for residential tenants commuting to work within Manhattan as well as students or faculty of Hunter College, Rockefeller University and Marymount Manhattan College. Also located very close to the medical corridor of the Upper East Side, the apartments are ideal for employees in both the Hospital for Special Surgery, Memorial Sloan-Kettering Cancer Center and New York Presbyterian Hospital. Both buildings are within walking distance of numerous parks, namely the infamous Central Park and smaller John Jay Park. CB Richard Ellis Group, Inc., a Fortune 500 and S&P 500 company headquartered in Los Angeles, is one of the world's largest commercial real estate services firm (in terms of 2008 revenue). The company has approximately 30,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. CB Richard Ellis has been named a BusinessWeek 50 "best in class" company three years in a row and a Fortune 100 fastest growing company two years in a row.