$23 Million Secured for Refinance of “Hudson Heights” Multifamily Property in Union City
Brad Domenico, Partner at Progress Capital negotiated $23,353,000 for the refinance of a newly constructed high-rise apartment building located at 115-129 37th Street in Union City, NJ. The 10-story property, also known as “Hudson Heights”, is comprised of 96 high-end residential apartment units.
When the borrower called Progress Capital, his request was simple (to him). “I have a newly constructed apartment building that will be leased for 1 month and I would like to take out all my equity, plus some.”
As a general rule, banks require a sufficient amount of time to demonstrate profitability, also known as “seasoning” before considering a permanent loan. In this instance, Brad had only 1 month of performance to work with, while sourcing an acceptable 10 year fixed-rate loan.
Ultimately, Brad was able to secure several options for the borrower who quickly made the decision to proceed with an Agency Loan (Fannie Mae) underwritten through Red Capital. The loan closed after only 1 month of stabilized performance at a rate under 4% fixed for 10 years, 3 years interest only and non-recourse. Many borrowers wind up paying costly fees to extend their construction loans or miss an opportunity to lock into a low rate thinking they need 12 months of history to qualify for a permanent mortgage, which is not always the case.
Located in desirable Hudson County, Union City is a draw for both residents and developers. “You’re ultimately closer to Times Square from Union City than you are from Brooklyn,” notes Brad. “It’s an emerging market – since it’s very close to the city and is still more affordable than Hoboken and Jersey City.”
RED Capital Group is recognized for its industry expertise, innovative and comprehensive structures, and consistently high rankings, RED Mortgage Capital has provided over $78 billion of integrated debt and equity capital since 1990, with a focus on the multifamily and affordable housing industries.
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