F inancial D igest F eaturing I nsurance /T itle
Real Estate Journal —October 13 - 26, 2017 — 5A
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M id A tlantic
NYmultifamily transaction is largest SBL transaction in the FreddieMac program’s history Sabal Capital Partners closes $129 million portfolio of Freddie Mac small balance loans
B ronx, NY — Sabal Capital Partners, LLC , a diversified fi-
capital into each property. The Brooklyn properties included: • 1060 Hancock Street • 1315 Sutter Avenue • 135 Dupont Street • 187 Rochester Avenue • 1904 Nostrand Avenue • 4515 Snyder Avenue “Greystone’s depth of knowl- edge in the Brooklyn real estate market and experience with Freddie Mac’s Small Balance Loan platform generated a very positive result for our cli- ent, Greystone and our partner Freddie Mac,” said Cristi. “We have been very successful at executing portfolio refinances with the Freddie Mac Small Balance product and it contin- ues to be extremely competitive term loan. After suffering a couple va- cancies and with a short term remaining on the anchor ten- ant lease, the sponsor needed to recapitalize to secure funds to re-lease/reposition the prop- erty. He was also seeking the ability to earn out funds at sta- • 802 Park Place • 809 Park Place “Completed on time within an aggressive schedule, this closing is an enormous accom- plishment for Sabal in one of the most competitive markets in the world,” said Pat Jack- son , chairman and CEO of Sabal Capital Partners, LLC. “We coordinated a marathon two days of individual loan closings, an outstanding test of Sabal’s resources given the strong pipeline of other loan fundings that were happening concurrently.” Rather than a bulk transac- tion, each of the 34 refinance loans in the portfolio were independently analyzed, un- derwritten and closed. This process included site inspec- tions conducted with five third parties, appraisals and envi-
in the New York market.” “We’re very pleased to join our strong partner Greystone in this transaction, which high- lights Freddie Mac’s growing small balance portfolio busi- ness,” said Stephen Johnson , vice president, Small Balance Loan Business at Freddie Mac Multifamily. “These transac- tions—which are pools of indi- vidual, small balance loans— are becoming a larger part of our overall production. They represent a vital opportunity to fully utilize our strategic advantage—specifically, our ‘hands-on’ approach to assess- ment, valuation and execution. Our approach, combined with portfolio scale, means more affordable units at a lower cost, with the same on-time delivery.” n “The upgrade and rehabilita- tion of the properties in this portfolio, which are comprised of nearly 100%workforce hous- ing, will provide families with a nice and affordable place to call home in an area with an extremely high cost of living,” said Isaac Kassirer , president at Emerald Equity Group. “We are extremely grateful and impressed with how efficient and seamless this monumental refinancing process has been bilization to monetize some of the value creation. Cronheim was successful in structuring a debt facility that offers both an IO bridge period with fundings for tenant improvements, leas- ing commissions and capex followed by a sizable earn-out during an amortizing period. n ronmental reports, reviewwith the Freddie Mac credit division and commitment letters as well as legal review, title analy- sis and loan documents for each property. All of this was enabled through SNAP, the company’s proprietary servic- ing portal.
with the teams at Sabal and Freddie Mac at the helm.” The Bronx portfolio is repre- sentative of Emerald’s impres- sive work in the multifamily sector to source, renovate and manage large and complex portfolio transactions. With this transaction, Emerald has once again successfully per- formed on their acquisition and turnaround strategy for their affordable housing investment thesis within a period of two years. Sabal Capital Partners, LLC recently was ranked the fast- est Seller/Servicer of Freddie Mac Small Balance Loans for the first half of 2017, a gold standard of closing efficiency and execution enabled by the company’s SNAP portal. ROCHELLE PARK, NJ — To further create oppor- tunities for property owners and deve l - opers, Case Real Estate C a p i t a l , LLC (Case) will now orig- inate lower- i n t e r e s t loans in the $2 million to $8 million range for proper- ties nearing stabilization. “As banks continue to pull- back in terms of lending on commercial real estate, pri- vate lenders like Case are providing a needed infusion of turnaround capital for a multitude of projects,” said Sanford Herrick , founder and managing principal of Case. “We have some of the best rates available in the market today for our ‘bridge light’ program aimed at prop- erties nearing stabilization.” Case’s new small loan pro- gram covers all asset types, including office, retail, in- dustrial, manufacturing, hospitality, self-storage and selected entitled land. Typi- cally, these loans will have an initial term of one to two years with extension options Sanford Herrick
“We are delighted to play a role in this unique transaction, which will ensure that more than 800 affordable rental units are preserved as work- force housing in the Bronx,” said David Brickman , execu- tive vice president and head of FreddieMac Multifamily. “This is the largest Small Balance Loan transaction in Freddie Mac SBL history, and it un- derscores the flexibility, re- sponsiveness and streamlined process that are synonymous with our program. We thank our strong lending partner Sabal, the entrepreneurial principals at Emerald Equity Group who made this possible, and look forward to continuing to create unique solutions that expand workforce housing.” n “We do everything in-house from approvals to servicing and have the expertise to get to a ‘yes’ quickly,” Herrick said. During the course of his 30+-year career, Herrick has orchestrated investments in more than $5 billion worth of commercial real estate. Case is introducing another new program that finances other lenders’ first mortgages and notes with interest rates at around 6% for up to 80% of the face value; the existing lender retains servicing. “We provide aggressive senior fi- nancing to reduce the holders’ exposure,” Herrick added. Since its establishment in 2013, Case has been providing financing solutions for transi- tional commercial assets, con- centrating on deals in the $2.5 million to $40 million range for properties in the metro New York area and South Florida. “The destruction caused by Hurricane Irma has also created the immediate need for reconstruction and the financing of it,” said Chris Mavros , managing director, CFO and principal of the com- pany. “Case is positioned to be a strategic partner in this massive effort.” n
nancial ser- v i c e s f i rm specializing in rea l es - tate, lending and banking, t o d a y a n - nounced the closing of a $129 million
Pat Jackson
multifamily portfolio of Freddie Mac Small Balance Loans in Bronx, New York for Emerald Equity Group . Encompassing more than 850 total units, it is the largest single Small Bal- ance Loan (SBL) transaction processed through the Freddie Mac SBL program since its inception in 2014.
Greystone refinances $20.849m 8-propertymultifamily portfolio in NY
Case Real Estate Capital launches small loanprogram of up to two years.
B r o o k l y n , N Y — Greystone hasprovidedmillion in Freddie Mac financing on
an 8-proper- ty portfolio in Brooklyn. T h e l o a n s were or i g i - nated by An- thony Cristi of Greystone’s New York of- fice.
Anthony Cristi
The refinanced properties, which all contain between six and 35 units, all received five- year fixed rate Freddie Mac Small Balance Loans which include an additional 15-years floating and 1 year of interest- only at 80% LTV. The property owner, Steve Lubin, received $6.1 million in cash-out pro- ceeds and plans to reinvest Linden, NJ — Cronheim Mortgage has secured a $10 million convertible bridge facility for two adjacent in- dustrial properties totaling 267,000 s/f. The seven-year loan offers a two-year variable rate interest only period fol- lowed by a five-year fixed rate
Cronheim Mortgage secures convertible bridge facility for Linden industrial complex
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