$2.5 Million Refinance of Elizabeth Mixed-Use Building Nets $2,100,000 Cash-Out to Borrower
Brad Domenico of Progress Capital arranged a $2,500,000 commercial real estate loan to refinance the newly constructed mixed-use building located at 640-648 Third Avenue in the Peterstown section of Elizabeth. The borrower purchased the property for $550,000 a year ago and planned to use $1,500,000 of personal equity to gut renovate the entire structure, complete work and return the rentable units to the market in under 2 years. The building was fully occupied within 30 days of completion.
The property, a two-story 15,315 SF residential & retail building, is divided across 7 two-bedroom, 1 one-bedroom residential units and 8,500 SF of street level retail. The retail unit is currently subject to a 13-year lease with “Bubbles Are Us” Laundromat. Domenico was able to negotiate a 75% loan to value, allowing the borrower to retire the existing debt on the property and recapture $2,100,000 of vested equity which will be used to fund the continued expansion of our client’s portfolio.
Additional key terms of this loan include:
- 4.125% Fixed for 7 Years
- 5-5-4-4-3-2-1 Declining Prepay
- *No PPP last 60 Days of Initial Term
- 7 Year Term w/ (1) 5 Year Extension Option
- 25 Year Amortization
Progress Capital is a commercial real estate advisory company serving clients since 1990. With over $40 Billion in closed loans and $150 Million of directly funded bridge loans, we will get you to the closing table… Plain and Simple. #thatsProgress