Brooklyn, NY On behalf of Novel Property Ventures, Newmark Knight Frank (NKF) has arranged an $18 million fixed-rate loan for the refinancing of 364 Lincoln Pl. The NKF team was led by Dustin Stolly and Jordan Roeschlaub, vice chairmen and co-heads of the New York Debt & Structured Finance team, and senior managing director Daniel Fromm. JP Morgan provided the 10-year full-term IO CMBS loan.
The sponsor had acquired the 53-unit multifamily property in Prospect Heights in 2015 and invested capital renovating units and upgrading common areas, which has improved cash flows at the property. The fundamentals of Prospect Heights continue to drive rent growth in the submarket while the sponsor continues to actively control expenses, providing for sustainable cash flow growth.
Stolly said, “The property benefits from strong demographics and market fundamentals, supported by an abundance of area amenities and demand drivers. The fact that this loan is one of the first CMBS loans to close post-COVID is a testament to the strength of the sponsor and the submarket.”
“Novel flawlessly executed its business plan as evidenced by the significant increase of cash flow since acquisition. Coupling that with the strong submarket fundamentals allowed for a seamless execution albeit closing this loan during the COVID-19 pandemic,” Fromm added.
Novel Property Ventures is a New York City-based real estate investment firm that capitalizes on the high demand and limited supply of the real estate market by managing and developing a collection of residential and mixed-use properties.
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