$9.975 Million Arranged for Re-Positioning of Newark Broad Street Retail/Office Building
As part of the ‘Living Downtown Redevelopment Plan,’ on June 27th 2016 the Newark Central Planning Board along with the Newark Landmarks and Historic Preservation Commission approved requested variances to the zoning of the existing building at 869-873 Broad Street, at the northwest corner of Williams Street. The four-story building at the site was originally an Oppenheim Collins department store built in 1910, and currently contains a mix of retail and office tenants.
Plans unveiled in October of 2016 include a complete gut renovation of the building and the repositioning of floors two through four from office to residential units. The mixed-use asset will add 37 residential units with a shared lobby and 22,000 SF of ground level retail.
In July 2017, the current owner of the property engaged Brad Domenico of Progress Capital Advisors to arrange a construction to permanent commercial loan allowing them to complete the building’s transformation and provide ample time to stabilize the property. Domenico was able to secure $9,975,000 in financing representing a 75% LTC including an 18-month interest only period for construction.
Additional key terms of this loan include:
- Floating at 1 month LIBOR + 3.50% with a floor of 4.5%
- 18 Months I/O with 6 Month Extension Option
- FHLBNY + 225 bps with a floor of 4.625%
- 10 Year Term
- 25 Year Amortization
- Declining Pre-Pay
- Limited Recourse upon stabilization
- 10% per annum principal reduction allowed without penalty
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