www.marejournal.com Sykes, senior vice president in Boston office, originated the transaction Beech Street closes $70 million Fannie Mae loan to refinance apartments in Jersey City, NJ F inancial D igest featuring 1031 E xchange Mid Atlantic Real Estate Journal — March 15 - 28, 2013 — 11A
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ERSEY CITY, NJ — Beech Street Capital, LLC announced that it closed a $70 million Fannie Mae conventional loan to refi- nance The Gotham, a 220-unit, 22-story high-rise apartment building in Jersey City. Brian Sykes , senior vice president in Beech Street’s Boston office, originated the transaction. BlueGate Partners , a bou- tique advisory and transac- tional firm based in Manhat- tan, brokered the deal. The borrower sought a cash- out refinance of The Gotham to invest in other develop- ment opportunities and take advantage of historically low rates. The challenge was se- curing a loan that was large enough to compensate for the substantial prepayment penalty on its existing loan. In addition, the property was subject to a payment in lieu of taxes (PILOT) agreement with Jersey City, which expired in 2020. This agreement would make underwriting especially complicated. The Beech Street team was undaunted. Working close- Oyster Bay, NY — Red Mortgage Capital, LLC , the mortgage banking arm of Red Capital Group, LLC , an- nounced that it closed a $19.5 million FHA 232/223(f) refi- nancing for Oyster BayManor/ Harbor House. The project is a 208-bed assisted living and dementia care facility located in Oyster Bay, NY. This financing will have a substantial positive impact on the project for many years to come. The low interest rate achieved through the FHA in- surance program significantly reduces the owner’s debt-ser- vice obligations and provides 30-year fully amortizing, non- Philadelphia, PA — Grosvenor Fund Man- agement (GFM) has ap- pointed Ryan Roberts di- rector, asset management.
ly with Fannie Mae, Beech Street secured approval for a $70 million loan, meeting the borrower’s cash-out re- quirements, and scoured the capital markets for terms that lowered interest payments by approximately 80 bps. Altogether, it closed the loan on the property in less than 45 days. “This was our second trans- action with Beech Street in less than a year,” said Chris Zirrith at Applied Capi- tal , a firm owned by two of the key principals. “We were thoroughly confident that the complexity of the deal wouldn’t slow them down and that they could deliver the terms we needed. They fully met our expectations!” The other principal is Panepinto Properties . Developed by the borrow- Staten Island, NY — Lisa McMahon , Dev Morris , and Andrew Stewart , have arranged permanent financ- ing in the amount of $51.25 million for two retail centers located in the Great Kills and Arden Heights neighborhoods of Staten Island. The fixed-rate loans were structured with a 10 year term and amortize over 30 years for the borrowers, NBM Realty Holding, LLC and Vil- lage Greens Shopping Center, LLC. Evergreen Shopping Center is an 89,330± s/f grocery-an- chored center with excellent access and visibility from both Amboy Rd. andGreavesAvenue in Staten Island. The Subject consists of a 61,750± s/f Path- mark anchor store and 27,580± s/f of inline space surrounding a central parking lot. Hackensack and Bo- gota, NJ — David Turley and Janet Proscia of Cron- heim Mortgage teamed up to arrange permanent mortgage financing for a portfolio of three multi-family properties. The 10-year fixed rate, non- recourse loans were placed at
ers in 2000, The Gotham was the first luxury apartment in Jersey City since the 1950s not located on waterfront. In addition to the 220 apartment units, the Gotham includes six occupied commercial spaces covering over 20,000 s/f on the ground floor and a 340-space, four-story parking garage. The units on the upper level floors are notable for panoramic views that encompass the Hud- son River, the Manhattan sky- line, and the Statue of Liberty. The Gotham is three blocks west of the Exchange Place PATH station and six blocks northwest of the Paulus Hook Ferry, providing convenient access to Manhattan. Addition- ally, it is near Interstate 78. The fixed-rate loan has a 10-year term, 9.5 years yield maintenance, and a 30-year amortizing schedule. n 3.75%. The mix of garden and mid- rise properties had been in the owner ’s portfolio since acquisition in two separate transactions in 2007 and 2008 with a total of 87 units. The aggregation of the assets into a portfolio created a more ef- ficient financing execution. “We help clients take advan- tage of market inefficiencies and opportunities. In this case, one of our close lender friends contacted us with an allocation of attractively-priced, 10-year money that needed to be placed immediately. We quickly iden- tified a client with a matching financing need and married the parties to create a win-win scenario,” said Turley. Proscia elaborated, “One of our clients had financed these Bergen County properties sev- eral years ago upon acquisition. That financing was coming to the last years of the loan term with an above-market interest rate and modest prepay cost. It was a great candidate for a strategic refinance. This was a beneficial transaction for both the borrower and lender.” n
Cronheim Mortgage arranges $57.5 million
The Gotham
Red Mortgage Capital provides $19.5 million assisted living/dementia care refinancing loan
recourse debt. In addition, the financing includes over $1.2 million in funding for capital renovations and upgrades to common areas throughout the building, including the cre- ation of a resident solarium. Overall, the financing pro- vided an important way for the owner to accomplish several strategic capital initiatives in an effort to meet or exceed service level demands in its assisted living market. Rachel Dombrowsky, owner/ president of Oyster Bay Manor/ Harbor House, said, “We are thankful to have completed this important transaction with Red Mortgage Capital. We are Roberts joins GFM fromGIC Real Estate in NYC, where he managed a portfolio com- prising direct investments, real estate fund investments,
looking forward to completing many important projects with the additional loan proceeds. The whole team was so help- ful in bringing us through the HUD process.” Red’s lead banker on the transaction, James Scrib- ner , managing director of Red Mortgage Capital, LLC said, “The ability to provide over $1.2 million for several important capital initiatives while reduc- ing total debt service with long- term, non-recourse financing provides a tremendous value to the owner. Oyster Bay Manor and Harbor House will be well positioned for many years to come.” n
corporate investments, and mezzanine debt. He also worked for Prudential Real Estate Investors of Parsip- pany, NJ. n Grosvenor Fund Management appoints Roberts director
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