F INANCIAL D IGEST
Mid Atlantic Real Estate Journal — March 16 - 29, 2012 — 7A
www.marejournal.com
EEHAWKEN, NJ — Beech St ree t Capital, LLC an- Executive VP Rosen originates Arcadia Nursing facility transaction Beech Street Capital provides $12.5 million to refinance Northern New Jersey apartments W
nounced that it has provided a $12.5 million Fannie Mae conventional loan to refinance The Simone, a new, ground- up construction building in Weehawken, New Jersey. The transaction was originated by Meridian Capital Group, LLC, and was financed by Beech Street Capital as part of its correspondent relation- ship with Meridian. This was the first agency loan for the borrower and their first experience with Beech Street. Beech Street delivered on the borrower’s PHILADELPHIA, PA — David A. Henrich, senior vice president of NorthMarq Capital’s (NorthMarq) Phila- delphia Regional office ar- ranged first mortgage ac- quisition financing of $2.468 million for 2.6 acres of land in Allentown, Pennsylvania. This asset consists of 2.6 acres which will be developed for two separate pad tenants. CVS will be the major tenant at the site on a 25 year ground lease with multiple options. Financing was based on a 25-year term and a 25-year amortization schedule and was arranged for the bor- rower by NorthMarq through its relationship with William Blair & Company, a Credit Tenant Lease Lender. Ac- cording to Henrich, the bor- rower needed maximum loan proceeds to acquire the land that is to be developed for two separate tenants. Loan proceeds from the CVS lease were sufficient to close the transaction. Complicating the transaction was CVS’s delayed rent commencement date and obligations for por- tions of the site development. He said, “The lender did an excellent job of structuring around the lease that con- tained release provisions for the second pad site and
Arcadia Nursing & Rehabilitation Center
The Simone
requests for a low rate and maximum proceeds, and ex- peditiously rate locked the
transaction 30 days after re- ceiving the application. With over 25 years of experience in
the real estate industry, the borrower currently owns 10 apartment properties in New Jersey and New York. Charles Grussgott the Me- ridian mortgage finance advi- sor on the deal was impressed with Beech Street’s efficiency and agency expertise, as this was his first experience with Beech Street as well. “This was one of the best experienc- es I have had with a lender. The Beech Street team did an excellent job from start to finish.” Built and completed by the borrower in early 2011, The Simone consists of 50 multi- family apartment units in a four-story building. Located in Hudson County, across the Hudson River from Manhat- tan, the property exhibited a very strong lease-up rate over the last 10 months and beginning in July, the prop- erty achieved 85 percent oc- cupancy. It is currently 100 percent occupied and accord- ing to the appraiser, Realty Services Inc., the demand for housing in the subject’s mar- ket exceeds supply. The fixed-rate loan has a 10-year term and 30 years of amortization payable on an actual/360 basis. In other news, Beech Street Capital, LLC announced that it has provided an $8.9 mil- lion HUD 223(a)(7) loan to refinance Arcadia Nursing & Rehabilitation Center, a 128- bed skilled nursing facility in Hamilton Square, New Jersey. The transaction was originat- ed by Joshua Rosen, executive
vice president of Beech Street Capital. Working from Beech Street’s Chicago office, Rosen leads the company’s nation- wide healthcare efforts. The borrower had 28 years left on an existing $9.0 mil- lion FHA loan. Beech Street accomplished an important goal for the borrower by in- creasing the loan term to 35 years, something that is becoming increasingly rare with HUD. By extending the loan term, Beech Street was able to refinance the property with substantial debt service coverage savings to the bor- rower and further increased savings with a significantly reduced interest rate. Beech Street also skillfully managed the underwriting process, which allowed for a seamless and expedited clos- ing. “Beech Street was an ab- solute pleasure to work with,” says Mike Gabriel, principal of Arcadia Retirement Com- munity, Inc. “A term exten- sion was absolutely essential for us, but we understand that they are not frequently granted. We were thrilled when it came through.” Beech Street expects to see more refinance activity in the seniors market in the coming year. “The conditions are really favorable right now for anyone with a cur- rent HUD- insured mortgage to refinance under Section HUD 223(a)(7),” Rosen says. “Not only are rates at all-time historical lows, but HUD has all but eliminated the (a)(7) queue.” ■
Henrich & Nalbandian of NorthMarq Capital arrange $14.408 million in mulitple mortgages
Citizens Bank
extended timeliness by CVS before they were required to develop their site and to build their building.” In other news, Greg Nal- bandian, Senior Vice Presi- dent and Managing Director of NorthMarq Capital’s New Jersey Regional office, ar- ranged a first mortgage refi- nance in the amount of $11.94 million for the RBS Citizens Bank Portfolio. This portfolio consists of 16 RBS Citizens Bank branches located inNew York, Connecticut, Pennsyl- vania and Delaware. Work- ing exclusively on behalf of a major REIT client, financing was based on a 5-year term with 3 years interest only and the following 2 years on a 40-year amortization sched- ule through NorthMarq’s
relationship with a regional bank. According to Mr. Na- lbandian, this transaction is a 60% LTV, non-recourse, cross collateralized loan with a 5-year loan term against an average lease term remaining of only 7 years in secondary and tertiary markets. He stated, “Given the shorter average lease term remain- ing coupled with the tertiary markets, there was not much fanfare for this financing on any level. However, we were able to identify a re- gional bank that liked the credit and the borrower and stepped up in a big way by offering 60% proceeds on a full non-recourse basis with a substantial interest only period, which was extremely important to the client.” ■
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