September 2024

16 — September 2024 — Financial — M id A tlantic Real Estate Journal

www.marej.com

F inancial

BCREG finalizes $13.6M loan for IOS acquisition

The proceeds will fund working capital and settle a seller note Kennedy Funding closes $1.28M land loan for hotel

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outdoor recreational op - portunities, Moses Lake at - tracts local tourism and new residents alike. The area, lo - cated around 2.5 hours from Seattle and directly off I-90, offers many family-friendly outdoor recreational activi - ties year-round. It’s home to the largest freshwater body in Grant County, with more than 120 miles of shoreline. Moses Lake is experienc - ing a surge in developer interest. A number of tech companies have moved to the area in recent years, at - tracting major business and talent to the greater area. Notable companies with a presence in Moses Lake include SGL Carbon, which manufactures carbon fiber and is poised to be the larg - est carbon fiber plant in the world; Dell; International Paper; and Boeing. With the major tech hub of Seattle not far from Moses Lake, the area has become an ideal place for expanding compa - nies to conduct business. “Being the go-to source for land loans means that the developers will be able to confidently move forward with this Moses Lake project,” Wolfer stated, “a hotel that will serve a growing number of visitors while helping build the community.” MAREJ

to close deals,” said Kevin Wolfer , CEO of Kennedy Funding. “We are uniquely situated to work through challenges and complexities to ensure our clients get the funding they need.” “We pride ourselves on get - ting clients to the closing table, regardless of obstacles,” added Edwin Urrego , executive loan officer at Kennedy Funding. “When a deal has merit, we will find a way to secure funding — a testament to our capabili - ties and our commitment to our clients.” MBrar Investments plans to construct a hotel on the property. The land is prop - erly zoned for hotel use, and it is expected that permits to begin construction will be granted soon. The property is situated along a major thor - oughfare only a few blocks from I-90, benefitting from high visibility and accessibil - ity. According to Urrego, the land was put up as collateral. “MBrar Investments knew we could deliver on this land loan, and our successful clo - sure demonstrates why bor - rowers trust us with their most challenging projects,” Urrego said. “We are proud to support developments that drive local growth and provide substantial benefits to communities.” With scenic beauty and

NGLEWOOD, NJ — A $1.28 million loan will help MBrar In -

vestments, LLC get one step closer to building a hotel in a growing resi - dential and tourism area in Washing - ton State.

107 How Ln.

growing portfolio of industrial assets in the NJ/NYC market,” said Eric Shalek , co-founder and principal of Ridgecut Road. His twin brother and partner, Scott Shalek , added, “107 How Lane is an extremely well-located asset that is func - tionally laid out and offers versatility for a deep pool of tenants in the industrial market. It is mission-critical real estate that serves as the backbone of our supply chain. However, you cannot find or develop assets like it today.” “ JLL is pleased to have secured acquisition financing on Ridgecut Road’s behalf. Byline Bank is well-versed in the IOS space and quickly understood the attributes that the property provides exist - ing and potential tenants, its exceptional location and the sponsor’s experience in the space,” said Michael Klein , senior managing director at JLL, the broker on the loan. “As a result, Byline was able to provide loan terms that best met the borrowers needs and will be an excellent rela - tionship for Ridgecut as they reposition the asset.” MAREJ

PHILADELPHIA, PA — PACE Loan Group (PLG) closed a $10.6 million C-PACE loan to complete the capital stack for the new construc - tion of a 114-unit multifam - ily property in the Fishtown neighborhood of Philadelphia resulting from combining six vacant city lots. Matthew McCormack , se - nior VP, originations in PLG’s Chicago office, originated the loan and coordinated with PLG’s in-house underwriting and servicing teams to close the loan. “When a local bank backed out at the closing table, PLG worked with JLL to bring a partner lender, Builders Capital , to complete the capi - tal stack and deliver an attrac - tive stretch senior execution at a nearly single-digit blended cost of capital,” he said. Builders Capital provided a $14 million construction loan. NEW BRUNSWICK, NJ — Byline Bank’s Commer - cial Real Estate Group (BCREG) has closed on a $13.6M loan for the acquisition of a 6.4-acre industrial outdoor storage site in New Bruns - wick. This is BCREG’s first loan with borrower Ridgecut Road and their institutional equity partner. The property, located at 107 How Ln., includes three buildings that offer 35,800 s/f of office, maintenance and in - dustrial space. The location is strategically situated 30 miles from the Port of New York & New Jersey, the largest port on the East Coast and one of the most active industrial hubs in the US. “Industrial outdoor storage is a newer asset class that has gotten the attention of many institutional equity groups. We’re happy to support Ridge - cut Road’s latest development in the sector,” said Joanne Campanile , senior vice presi - dent for Byline’s Commercial Real Estate Group. “We are excited to add this irreplaceable, low-coverage industrial property to our

Edwin Urrego

Kennedy Funding, the Englewood-based direct pri - vate lender, announced the closing of a $1.28 million loan on 17.3 acres of raw land located at 2308 West Broadway Ave. in Moses Lake, WA. The proceeds will be used for working capital, and to pay off an existing seller note. The borrower, MBrar In - vestments, went into con - tract to purchase the Moses Lake property in 2020 dur - ing the COVID-19 global pandemic, completing the purchase in 2021 for $2.85 million. Notably, Kennedy Funding agreed to allow the existing lien holder to subor - dinate another loan behind the new loan in the amount of $700,000. “Kennedy Funding is no stranger when it comes to complex land loans, and we’re renowned for our abil - ity to find innovative ways

DC Green Bank secures $4.6M from US DOE for energy efficiency loan fund in affordable housing

PLG completes $10.6M C-PACE loan for multifamily development

“By supporting the development of high-performance buildings that stretch beyond our current standards, we’re leading the way to a more sustainable and prosperous future.” “This award will enable us to bring together the public and private sectors to invest in the clean energy economy and deliver the benefits of green development to underserved communities,” said DC Green Bank CEO Trisha Miller . “This revolving loan fund will support direct investment in a more equitable and sustainable DC.” “We’re excited to be able to use this fund to achieve both sustainability and affordability in the District’s housing stock,” said DHCD director Colleen Green . “This new program demonstrates the power of col - laboration to deliver the benefits of a clean economy to more of our residents.” MAREJ

energy efficiency improve - ments in affordable housing construction and building upgrades. DOEE and DC Green Bank will operate the loan fund and collaborate with the District’s Department of Housing and Community De - velopment (DHCD) to identify eligible projects within DC’s Housing Production Trust Fund pipeline. The Energy Efficiency Re - volving Loan Fund will sup - port Mayor Bowser’s goals to deliver at least 12,000 afford - able housing units by 2025 and achieve carbon neutrality for the District by 2045. “This new fund will create an opportunity for affordable housing developers to incor - porate deeper energy efficient improvements into their build - ings, helping the District meet its climate goals,” said DOEE director Richard Jackson .

WASHINGTON, DC — The District’s Department of Ener - gy and Environment (DOEE)

was awarded $4.6 million by the U.S. Department of Energy to establish an innovative loan fund led by DC Green Bank

The C-PACE proceeds will be used for the building envelope, energy-star windows, HVAC, lighting systems, and mechani - cal systems and are expected to save $49,644 annually. The Fishtown neighborhood is northeast from downtown Philadelphia, near Temple University, and within walk - ing distance of all forms of mass transit, including the elevated South Southeast - ern Pennsylvania Transit Authority (SEPTA) tracks of the Market-Frankford Line. MAREJ 1440 Front St., Philadelphia

Trisha Miller

to boost energy efficiency im - provements in affordable hous - ing. Led by DC Green Bank, the loan fund will help make affordable housing greener and help the District achieve its ambitious sustainability and equity goals by providing lower-cost capital for energy- efficiency upgrades. The new Energy Efficiency Revolving Loan Fund will provide financing at below- market rates for enhanced

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