F inancial D igest F eaturing A ppraisal
Real Estate Journal — September 16 - 29, 2016 — 9A
www.marejournal.com
M id A tlantic
24-month term placed with Procida’s 100 Mile Fund Progress Capital secures $68.5m for Phase II of Gull’s Cove Condo Complex in Jersey City
ERSEY CITY, NJ — Kathy Anderson of Prog- ress Capital Advisors has arranged a $68.5 million construction loan for a valued client to begin Phase II of Gull’s Cove, a nine-story, 107 unit condominium tower. This is the final stage of the Gull’s Cove Condominium Complex located in Jersey City’s Liberty Harbor North redevelopment area across from Liberty State Park. The location provides convenient access into New York City while offering stun- ning views of its skyline. In 2004, Progress Capital arranged the initial $81 mil- lion loan for the construction of 331 units in Phase I. After the financial crisis, the owner decided to delay Phase II until the market timing was correct. The combination of limited in- ventory along the Gold Coast combined with continued low J VIRGINIA BEACH, VA — Greystone , a real estate lend- ing, investment and advisory company, announced that it has provided $33.25 million in FHA-insured financing for the construction of The Choices at Holland Windsor, a multi- family development project in Virginia Beach. The loan was originated by Donny Rosen- berg , and is Greystone’s first new construction transaction to utilize HUD’s 2016 MAP Guide standards for a lower Mortgage Insurance Premium (MIP) threshold based on Green and Energy Efficiency Multifamily Housing requirements. The Choices at Holland Windsor will consist of 252 residential market rate units spread across seven buildings in the Holland Rd. / Windsor Oaks intersection of Virginia Beach. To qualify for the Green and Energy Efficiency Housing MIP reduction, a real estate project must produce a State- ment of Energy Design Intent (SEDI) score of 75 or higher. The Choices at Holland Wind- sor produces a SEDI energy
interest rates, has created the perfect environment to absorb these units quickly. The Phase II construction loan is an inter- est only 24-month term that was placed with Procida’s 100 Mile Fund. “We are finding that with the Basel III HVCRE rules and the tightening of con- struction credit especially for condominiums, often times a non-traditional bridge lender is better suited for a developer’s capital needs,” said Anderson. Gull’s Cove II is expected to be completed late 2017 and pre- sales are underway. The project will include 1, 2 and 3 bedroom apartments, duplexes and tri- plexes ranging in size from 678 s/f to 2,170 s/f. The two buildings are adjoined by a ground-level row of retail shops. Amenities include 24/7 concierge, fitness center, community room, com- mon outdoor patio and covered on-site parking. n
Gull’s Cove Condominium Complex
Greystone provides $33.2mFHA-insured financingforVirginiaBeachdevelopment
Houlihan-Parnes affiliate arranges a $7.5m loan for a full-service hotel
The Choices at Holland Windsor
score of 89, and the project’s design satisfies EarthCraft Multifamily Certification, a green standard recognized by HUD. Features of the new construc- tion that contribute to meeting these green standards include advanced framing techniques with insulated corners; ENER- GYSTAR appliances; advanced interior and exterior LED light- ing; and construction materials made from recycled content, among others. “While the loan process for The Choices at Holland Wind- sor was well underway when HUD released the 2016 MAP Guide, the borrower was able to take advantage of the re-
duced MIP before closing,” said Phiet Nguyen , deputy chief FHA underwriter and head of the 221d4 underwriting team at Greystone. “Recognizing the many benefits of building an environmentally friendly property, while HUD was still reviewing the final application, the developer and his consul- tants made a concerted effort to improve the project’s design and construction materials to meet the EarthCraft Multifam- ily standard. HUD’s incentive for reducing overall energy use by offering a lower annual MIP is an industry game changer; it’s beneficial for everyone in- volved in this project, investors and residents alike.” n
Full Service Hotel, Nassau County, NY
sistently operated at higher than average occupancy levels by offering upgraded rooms and a wide range of ameni- ties including a full service restaurant, a banquet facility, an abundance of on-site park- ing and a swimming pool. The non-recourse loan was placed with a NY-based bank for a term of 10-years. The inter- est rate was fixed at 4.0% for the first 5–yrs. As per Cronin, “the lender was very accom- modating in addressing the borrower’s needs with regard to the timing of the closing.” n
NASSAU COUNTY, NY — Jeanne Cronin and Zeev Douek of Q10 New York Realty Advisors , an affiliate of Houlihan-Parnes Real- tors, LLC , have arranged a $7.5 million permanent loan on a full service hotel currently operating under the Best Western flag. The property is well located on Sunrise Highway in downtown Rockville Centre a short walk from many local businesses, stores and restaurants as well as the Rockville Centre train station. The property has con-
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