Rendering of 401 95th Street, Bay Ridge - Brooklyn, NY
Russell Nova, The Cornerstone Group of NYBrooklyn, NY The Cornerstone Group of NY LLC has arranged the financing for a new development located on 401 95th St. in the Bay Ridge section. The project will consist of 22 residential units and one retail space.
Russell Nova, SVP of The Cornerstone Group of NY, spearheaded the project, while working with the contractor and developers. The total project funding was $8.84 million which is a two-year interest-only loan. When the developers approached Nova in hopes of guidance and expertise for financing the project, Nova felt confident in plans and the idea of constructing a condo project in Bay Ridge. The market in Bay Ridge is saturated with co-ops and rentals, where within a 20-block radius they have one condo project.
After carefully analyzing the area and market, it was agreed that a new condo project would be feasible. Other developers will be making their way to Bay Ridge, specifically for condo projects.
Nova predicts two to three new projects in Q4 going into 2017. The developers for 401 95th St., had real confidence in The Cornerstone Group of NY’s ability to secure financing on the project, especially since this is the developer’s first major project and many lenders have taken a step back to construction financing. Lenders in today’s market are generally stepping away from construction financing unless it is a repeated client of the bank and fits their niche.
Requests sub of $25 million will be limited to the amount of lenders eager to place debt on their books for construction.
Nova worked with the SVP of the bank where he demonstrated strength in the borrowers and project details.
This year, two of the major lenders exited the construction field. Nova presumes that in Q1 of 2017 we should see some lenders making a play back to construction.
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