$2.5 Million Refinance of Elizabeth Mixed-Use Building Nets $2,100,000 Cash-Out to Borrower
Brad Domenico of Progress Capital Advisors 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. Purchased in May 2014 for $550,000, the borrower, using $1,500,000 of personal equity, gut renovated the entire structure completing work and returning the rentable units to the market in May 2017. 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 a75% 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