6-12-20

6A — June 12 - 25, 2020 — Creative Financing — Financial Digest — M id A tlantic Real Estate Journal

www.marej.com

C reative F inancing By Brenner Green, Real Property Capital, Inc. To Fix or Not to Fix?

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at the low rate of 3.8% through a forward swap even though the renovation funds would not be drawn down until sometime in the future up to 36 months out. The first three years were interest only and the following four years were scheduled to amortized over 30 years. This structure provided the client with maximum flexibility to ex - ecute their business plan while providing the lowest overall cost of capital. Our ability to provide this level of flexibility is one of the ways we are able to retain clients long term. This structure won us a “client for life” with

whom we look forward to doing more in the future. R. Brenner Green is a 20-year veteran in commer- cial real estate finance and

just about any combination you can imagine. Last year, we financed the ac - quisition of a 45-unit apartment complex in suburban Philadel- phia that included around $8.5 million in acquisition and clos- ing funds and around $1 million of available loan proceeds for future capital improvements. Overall, this represented 75% of total project cost. The client’s plan was to reno- vate half of the units initially and the other half over time as they turn over, funded through cash flow. We were able to fix the entire loan for seven years

hat is the question. In any rate environment, clients are wrangling

president of Real Property Capital, Inc., a full-service commercial mortgage bank- ing firm based in the Phila - delphia suburbs. MAREJ

over whether to fix the rate or f l oat i t . Particularly when you get i n t o s wa p dea l s , thi s issue tends to arise. We h a v e d o n e

Houlihan-Parnes Realtors announce the placement of a $29M first mortgage

Brenner Green

deals were clients fix part of the loan and float part of it, where they float with the right to fix for up to the first 24 months following closing, or

BRONX, NY — James J. Houlihan, Bryan Houlihan, and Christie Houlihan of Houlihan-Parnes Realtors announced the placement of a $29 million first mortgage on the 222,637 s/f office condomin - ium at 1775 Grand Concourse in the Bronx. The 10-year, non-recourse loan closed with a local bank at a fixed rate of 2.90%. The mortgage covers a commercial condominium interest in the 300,000 s/f building that shares ownership with Verizon. Verizon uses their two floors to house their central switching boards for all land lines in the Bronx. The borrower was represented in the transaction by Elizabeth Smith of Goldberg Weprin Finkel Goldstein, LLP and title was acquired by First American Title . The property is owned by Sam Jemal of JJ Operating, Inc. and members of his family together with James J. Houli- han and members of Houlihan- Parnes Realtors, LLC. The property was acquired in February 2012 from Ve- rizon and is the second large successful turnaround project engineered in the Bronx by the Houlihan and Jemal families. Their initial project was the successful conversion of the vacant former Alexander’s/ Caldor’s department store on the N/W corner of Fordham Road and the Grand Con- course into a multi-tenant retail/office building in 2001- 2004. In other news, Ed Graf of Houlihan-Parnes Realtors, LLC has arranged for 1st mortgage re-financing for a single tenant Dialysis Cen- ter. The property is located at 3440-3448 Boston Rd., Bronx. The non-recourse loan for $3.5 million is fixed at 3.9% for seven years with a 30- year amortization schedule. The borrower has a 5-year option. MAREJ 3440-3448 Boston Road, Bronx

1775 Grand Concourse, Bronx

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