Efrat Sharon, senior vice president and the head of TerraCRG's debt financing team, recently arranged $5.5 million in first mortgage financing for the acquisition of a multifamily portfolio in the Bedford-Stuyvesant neighborhood.
The portfolio of six buildings including 654 Putnam Ave., 319 Malcolm X Blvd., 419 Marcus Garvey Blvd., 421 Marcus Garvey Blvd., 804 Macon St. and 814 Macon St. is a total of 37,950 s/f with a total of 46 residential units plus one commercial store. The portfolio was acquired at a purchase price of $7.325 million, or $193 per s/f, by IWC Capital Management LLC.
IWC hired TerraCRG on an exclusive basis to advise on the financial aspects of the deal and assist with the procurement of the debt. The transaction was closed in 45 days with $5.5 million in commercial bank loan financing, representing a 75% loan-to-value.
"A large percentage of units in the portfolio were recentlyrepositioned to a higher asset quality through capital improvements, creating an attractive value proposition for the borrower, which was further enhanced by the financing terms arranged by TerraCRG," said Sharon.
Matthew Wright, managing member of IWC Capital Management, said, "IWC recognizes the value added brought to this transaction by TerraCRG. We will continue to work with the TerraCRG team in structuring creative financing solutions as the firm looks for additional acquisition opportunities in Bedford-Stuyvesant and other city neighborhoods."
Additionally, TerraCRG has completed the sale of a six-unit corner mixed-use building at 149 4th Ave. The property is located at the corner of 4th Ave. and Douglass S., across from the Arias Park Slope. The four-story walk-up was sold in an all cash transaction valued at $2.12 million. The 22 ft. wide building totals 5,940 s/f and has an additional 4,655 s/f of available air rights. The ground floor restaurant space is occupied by an Australian pub called Sheep Station.
Adam Hess, partner and senior vice president at Terra CRG along with associate Jacob Colleran were the sole brokers involved in the transaction.
"New residential developments like the Arias and the anticipation of the Barclays Center opening next month has noticeably drawn new investors' attention to the area. The demand has therefore increased, allowing us to achieve previously unheard of metrics for property owners. On the sale of 149 4th Avenue we achieved a premium selling price equal to a 6% cap rate and 13X GRM," said Hess. Tags: