Hudson Realty Capital funds $5.4 million bridge/construction loan

Hudson Realty Capital LLC has funded a $5.4 million bridge and construction loan involving an apartment building. The loan proceeds were used by the borrower, an experienced builder, developer and multifamily operator, to purchase the property and fund completion of the partially constructed building. Comprised of 24 studio and one-bedroom rental units, the five-story building is centrally located in Prospect Heights. Amenities include high ceilings, loft-mezzanines in several units, on-site parking and a common rooftop space. Construction was halted in 2006 when a work-stop order was placed against the original developer by N.Y.C.'s Department of Buildings. "Even in markets like N.Y.C. where capital is readily available, there is still a bifurcation in the market," said Spencer Garfield, HRC managing director. "Cash-flowing properties are attracting very competitive capital from multiple sources; however, properties that have a value-add component, in the form of renovation/construction or lease-up, are not easily financeable. This is a good example of the latter; and, as a result, Hudson was able to provide the capital necessary to allow this very experienced developer to effectuate the business plan." Based in Manhattan, Hudson's recent New York City transactions include a $10.2 million construction loan for a proposed mixed-use building in SoHo; $8 million in note acquisition financing for four industrial properties in Brooklyn; $5.65 million DPO loan for a mixed-use loft building in Tribeca; and a $14.15 million first mortgage loan for an industrial building in the Bronx.