Runko and Nichols of Paragon Prime Funding finance $17.325m for three props.

Paragon Prime Funding recently arranged a total of $17.325 million for three upstate transactions. Jim Runko, director, small business loans, of Paragon, arranged a $10.625 million construction-to-permanent loan on a new 92-key Homewood Suites. The hotel, currently under construction, will be complete by August. Paragon was integrally involved in pre-construction feasibility, market analysis, franchise selection, cash flow modeling, and lender solicitation. Paul Nichols, managing partner of Paragon, arranged a $5 million permanent mortgage on a 64-unit apartment complex currently under construction in Cobleskill. Paragon was able to structure a deal that allowed for closing of the permanent loan based upon 60% lease-up with a holdback to be funded based on future leasing hurdles. This structure allowed the borrower to lock in their interest rate and receive additional loan proceeds over and above the construction loan. The loan provided for a 10-year term and a 30-year amortization schedule. Nichols also arranged a $1.7 million permanent mortgage on an 8,000 s/f retail building located on Wolf Rd. in Albany. The single tenanted building was being leased to Complexions Day Spa which was moving from another less visible location. In addition to structuring a loan that provided for building renovations, Paragon also arranged a second mortgage with an Albany County based job-creation loan fund that allows for below market interest rates. Paragon also worked with the borrower and NYSERDA such that the borrower will be able to buydown the interest rate on the first mortgage upon completion of the "green" renovations.