Progress Capital Arranges $3.5 Million in Refinancing For Multifamily Property in Brooklyn
Brian Anderson and Eddie Miro of Progress Capital secured a $3,525,000 loan for their client to refinance the property located at 305 Sumpter Street, Brooklyn, NY.
The bank was requiring a minimum DSCR of 1.30, when the appraisal came back without the applicable credit for a pending 421-A tax abatement we dropped below the minimum required DSCR. Due to the increase in tax expense our loan proceeds were cut by $300,000.
By working closely with the bank and the appraiser, Brian and Eddie were able to provide the borrower with the credit for the abatement. This not only raised the loan proceeds back up to $3,525,000, but it allowed the borrower to pay off a high leverage construction loan without bringing additional equity to the closing table. Haven Savings Bank provided a 5-year fixed rate loan with 2-Years of Interest Only.
The property is located in Brooklyn’s Ocean Hill neighborhood and contains a 4-story newly constructed (9) unit multifamily building, (3) of which are designated as affordable. The unit mix includes (1) studio, (3) one-bedroom apartments, (2) two-bedroom apartments, and (1) three-bedroom apartment and feature hardwood floors throughout with top of the line stainless-steel appliances. Multiple amenities on the premises include a video income system with individual systems installed in each apartment, an on-site laundry room and a finished roof top with custom pavers with a common courtyard for residents to enjoy.
Ocean Hill is a bustling urban neighborhood in the subsection of Bedford-Stuyvesant. The location of the property is within walking distance of public transportation, fast food restaurants, grocers, local businesses and community parks such as Marion Hopkins Playground.
Since 1990, Progress Capital has closed over $40 Billion in commercial loans and $150 Million in directly funded bridge loans. As a commercial real estate advisory firm, we can advise you on any real estate investment you are considering and provide the financing advice you need to manage through the commercial real estate acquisition and/or financing process. We consistently get our clients to the closing table… plain and simple!