F inancial D igest
Real Estate Journal — July 15 - 28, 2016 — 5A
www.marejournal.com
M id A tlantic
Procida Funding reaches $300m+ mark since 2011
Expands relationship with Capital One Liberty SBF secures $75m in B Round Capital Raise
100 miles of New York City, has funded a variety of com- mercial, retail and residential projects. Recent transactions in- clude: • A $68.5 million construc- tion loan to renew construc- tion on the long-dormant Gulls Cove II Condo and Retail project in Jersey City. • A $7.16 million construc- tion loan for the refinancing, renovation and conversion of a vacant building into market-rate luxury loft con- dominiums with a brewery on the ground floor in Beacon, NY. • A $16.2 million construc- tion loan for the refinancing of the Mural Arts Loft in the North Broad Street Corridor, one of five projects that Proci- da is currently supporting as the neighborhood reemerges as a beacon of commerce and entertainment. • A $34.75 million construc- tion loan for the conversion of the Divine Lorraine Hotel into luxury apartment units with ground floor retail, also lo- cated in Philadelphia’s North Broad Street Corridor that the 100 Mile Fund is sup- porting with the intension of being the impetus to continue the neighborhood’s rebirth as a beacon of commerce and entertainment. • A $3.365 millionmortgage bridge loan to Tower Real Es- tate, LLC for a medical office building in Hackensack, NJ. n
ENGLEWOOD CLIFFS, NJ — Recent construction loans in Jersey City, Hack- ensack and Philadelphia by Procida F u n d i n g ’ s 1 0 0 M i l e Fund have e l e v a t e d its lending originations to more than $300 million since 2011. The 100 Mile Fund has provided 74 loans of which 34 have been repaid total- ing more than $152 million, earning more than 14% for its investors. “We do not chase trends – we focus on developers of low- risk projects in sub-markets like Nyack, NY or Paterson, NJ. Many lenders do not un- derstand that the price basis and stability in those markets reduces risk,” said William Procida , president of Procida Funding & Advisors, LLC. The 100 Mile Fund, a mid- dle-market real estate invest- ment vehicle focused on devel- opment and bridge loans, has averaged returns of 13% since being established in 2011. The fund’s typical borrower refinances with conventional long-term debt an average of 14 months after originating a loan with Procida, creating an exceptional velocity that rewards the Fund’s investors. The 100 Mile Fund exclu- sively funds projects within William Procida
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Mission Capital’s unparalleled ability to arrange favorable loans for our clients in every market across the country,” Cohen said. “Through diligent outreach to our wide range of lender contacts, we were able to arrange an extremely favorable loan for our client, enabling them to capitalize on Center City Philadelphia’s significant foot traffic and in- comparable culture.” The area’s high concentra- tion of office workers, tourists and local residents has made it one of the city’s most sought- after retail locations, leading to cial mortgage debt predicted to mature over the next three years, exponentially expand- ing the market for 504 loans. Liberty SBF plans to capture a significant volume of the refinance wave through its National First Lien SBA 504 Wholesale Program. "Liberty SBF expects to origi- nate over $200MM in 504 loans in the next 12 months on asset types that range from industri- al and self-storage facilities to hotels among others," said Alex Cohen , CEO, Liberty SBF. "By increasing our already sub- stantial nationwide network we will help serve more small businesses seeking commercial property financing." By revitalizing and trans- forming the 504 market, Liber-
skyrocketing retail rents. “The borrower plans to im- plement capital improvements at the properties and increase cash flow through aggressive lease-up and increasing retail rents to market rates,” said Hirt. “We received offers from a wide range of lenders, includ- ing banks and debt funds that were interested in investing in these prime retail proper- ties. Ultimately, we closed on an excellent bank loan with a great rate, providing the spon- sor with the necessary capital to unlock the full potential of these assets.” n "We're excited to invest di- rectly in a platform that is revolutionizing the commer- cial real estate lending busi- ness,” said Elie Brende r, chief investment officer, Exigent Alternative Capital. “Liberty SBF's lending focus and ex- isting portfolio presents a compelling opportunity that is consistent with our investment strategy.” n “This was a unique ex- ecution as the hotel suffered from a small setback that consequently impaired the hotel’s performance. This also came at a time when the owners were looking to stra- tegically position the hotel due to certain market condi- tions and needed additional capital on top of retiring their existing debt to implement a PIP,” said Williams. n ty SBF is filling an exceedingly large void in secondary market lending with its National First Lien SBA 504 Wholesale Pro- gram. Liberty SBF will partner with approved banks, non-bank lenders and other SBA loan intermediaries to originate 504 loans across the country and can pay up to 4 points of premium to its partners.
EWYORK, NY — Lib- erty SBF has received $75MM in its Series
B round of funding led by Exigent Capital and M a i n l i n e Investment Pa r t n e r s , among other pr i vat e in- ve s tment s .
Alex Cohen
In conjunction with the equity raise, Liberty SBF has expand- ed credit facilities with Capital One Bank . Congress recently passed legislation to permanently re- instate the SBA 504 Refinance Program. This program will help to refinance some of the almost $1 trillion in commer- PHILADELPHIA, PA — Mission Capital Advisors ’ Debt & Equity Finance team arranged $37.2 million in non-recourse financing for a portfolio of retail properties in Center City Philadelphia’s premier retail district. The Mission Capital team of Jason Cohen, Ari Hirt and Jamie Matheny arranged the loan on behalf of a major local in- vestor. “Our execution of this trans- action in Philadelphia — a city that is experiencing an explosion of real estate in- vestment — is a testament to ESSINGTON, PA — Me- ridian Capital Group , America’s most active debt broker, arranged $7 million in permanent financing for the refinance of the Wynd- ham Garden Philadelphia Airport hotel located in Es- sington. The five-year loan, provid- ed by a balance sheet lender, features a competitive rate of below 5.00% and one year of interest-only payments. This transaction was negotiated by Meridian managing direc-
Mission Capital procures $37.2 million loan for Philadelphia retail portfolio
WASHINGTON, DC — Eastern Union Funding (EasternUnion) has arranged nearly $4.3 million in financ- ing for The Jocelyn Group to acquire 1515 Rhode Island Ave., NE, where it will develop The Violet, a modern, 20-unit luxury rental apartment build- ing with underground parking. Minutes from downtown and well-served by metro and bus lines, The Violet’s two-bedroom and two-bathroom apartments will feature high-end finishes, including hardwood floors, granite counter tops and stain- less steel appliances. Rents for Eastern Union organizes $4.3 million in financing the 1,100 s/f units will start at $2,400 per month. Most resi- dents will have private outdoor space and all will have access to the rooftop deck resplendent with native plantings. According to Eastern Union senior loan consultant David Merkin , the 10-year loan for the shovel-ready site reflects 80 percent of the acquisition cost and includes construction financing. Amortized over 30 years, the debt, which was secured through Presidential Bank, comes with a five-year fixed rate and 18 months of interest-only payments. n
Meridian Capital Group arranges $7 million tor, Brian Flax , associate, Joel Chetner , and associate, Beau Williams , who are all based in the Company’s NYC headquarters. space. Hotel guests also have access to free parking and an airport shuttle.
The 308-room property, located at 45 Industrial High- way, is conveniently located just three miles from the Philadelphia International Airport and 12 miles from downtown Philadelphia. The hotel features a restaurant and lounge, outdoor pool, fitness center, business cen- ter and 6,500 s/f of meeting
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