Paradigm Commercial arranges closing of $125 million credit facility

Paradigm Commercial Real Estate LLC arranged the closing of a $125 million credit facility used to purchase the Greystone Hotel Building located at 212 West 91st St., at Broadway. The Greystone is a 15-story, fully amentized apartment building, containing 362 residential units, almost all of which were fully gut renovated as part of a $30 million renovation plan implemented by the sellers; Brack Capital. According to Michael Edery, principal of Paradigm, the five-year interest only loan was structured as a 2 tranche transaction, with the first tranche in the amount of $113.65 million used to finance the purchase, and priced at LIBOR plus 360 BPS, and the second, $12 million tranche, priced at LIBOR plus 380 BPS. Once fully funded, the loan will represent close to 90% of the total cost of the asset. "The property was delivered with close to 30 vacant units, which allowed for tremendous upside, once occupied," said Edery. The junior tranche of $12 million will advanced upon occupancy of the vacant units, which is anticipated to be in about 60-90 days from closing." The asset, purchased by Acuity Capital though its principal Elliot Neumann, proved accretive to Acuity's portfolio of high-end NYC residential buildings. "Neumann's eye, and understanding of commercial real estate is exemplary, and makes it a real pleasure to deal with him," said Edery. The loan closed in approximately 40 days from execution of the application.