Brad Domenico Secures $4,400,000 for Renovation of Three Queens Multifamily Properties
Brad Domenico of Progress Capital Advisors arranged a $4,400,000 loan for Duke Properties secured by three buildings located at 1673, 1675 and 1726 Woodbine Street in Queens, NY. Duke acquired the properties in 2015 and proceeded to vacate most of the residential units in order to reposition the buildings. The proceeds of the loan were used to refinance $2,500,000 in existing debt on the properties – representing 63% of the purchase price as it relates to the original acquisition. The remaining $2,000,000 will be used to renovate and reposition the 18 residential units throughout and fund an interest reserve.
1673 and 1675 Woodbine Street are adjacent properties with roughly 5,594 SF each divided into 6 residential units over three floors. 1726 Woodbine Street is a 4,725 SF building also with 6 residential units across three floors located on the same block. Utilizing the proceeds of the loan, all three properties will undergo a complete gut renovation – updating units throughout with new kitchens, bathrooms, floors and fixtures while also making capital improvements to the properties’ HVAC systems, common areas and exterior repairs.
Domenico was able to arrange a 24-Month Interest-Only period which will allow Duke Properties to complete capital improvements and stabilize the building at market rents. The loan will be full recourse during the construction phase but the recourse will burn-off upon stabilization.
Additional key terms of this loan include:
- Floating Rate at L+300 bps w/ floor of 4.45%
- 3 Year Term
- 24 Months I/O
- Two 1-year Extension Options
- 30 Year Amortization after 24 months I/O
- .50% Exit Fee — No Other Prepayment Penalty
- Individual Building Releases Permitted
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