Sutton of Parallel CRE closes $10.5 million loan for retail development
Brooklyn, NY Richard Sutton of Parallel CRE arranged a $10.5 million acquisition and pre-development bridge loan for 66 North 6th St., home to the Music Hall of Williamsburg.
Parallel CRE arranged the financing on behalf of the sponsor, which acquired the property for $14 million. The senior, first-mortgage loan was sized at 75% of the purchase price and is priced competitively over one-month term secured overnight financing rate (SOFR). The interest-only loan carries a 12-month initial term with two six-month extension options.
Located in Williamsburg’s retail corridor, the sponsor intends to redevelop the property into a mixed-use residential-over-retail building that utilizes the zoning floor area (ZFA).
Parallel CRE worked across its debt fund relationships to identify a capital partner comfortable with the asset’s specialized operating profile and the site’s long-term development potential. The result is a structure that supports both the acquisition and the pre-development phase of the business plan.
“Assets like 66 North 6th don’t fit neatly into a standard underwriting box,” said Sutton, managing partner of Parallel CRE. “The lender took the time to understand the long-term value of the site, and that allowed us to deliver a structure that gives our sponsor flexibility as they execute their plan.”