Progress Capital Arranges $85 Million Loan for Bronx Mixed-Use Building
Brad Domenico, Partner at Progress Capital arranged an $85,000,000 loan to refinance 825 East 141st Street located in the Port Morris section of the Bronx.
Originally constructed in 1916, the building once served as a major baking facility for the Great Atlantic & Pacific Tea Company, also known as A&P and later became the world’s largest warehouse and rebuilding facility for food processing equipment for Union Standard Equipment Company. In 2016, the building was purchased in partnership by the Bluestone Group, the Altmark Group, Madison Realty Capital and Galil Management who recently finished a $45 million renovation on the building to include new mechanicals, new elevators, new ground floor retail space, office space, industrial space with private parking, a roof deck and a penthouse with 20-foot ceilings. Today, the building is now known as ‘Union Crossing’. The property welcomed its first tenant, Westhab, in Q4 of 2019, which currently occupies 8,233 SF of space used for their executive offices and a job training center. Westhab is a non-profit organization that develops quality affordable housing and provides youth programs and employment services. Approximately 260,000 SF of space remains available for lease. The leasing brokers for the property are Ellen Israel and Greg Smith of JRT Realty Group.
Union Crossing is conveniently located two blocks from the number 6 train and the Bruckner Expressway. Access to connective rail lines drove the early development of the Port Morris waterfront around the turn of the 20th Century and major transportation arteries continue to define the neighborhood today.
Domenico negotiated a LIBOR floating loan to replace the construction loan and provide necessary funds to allow for tenant improvements and leasing commissions during lease up. LibreMax Capital, a New York based asset management firm, provided the debt.
Progress Capital is a commercial real estate advisory firm with over $40 Billion in closed loans and $150 Million of directly funded bridge loans. With over 30 years of experience, Progress continues to provide value to clients by securing the best financing options available in the market.
Altmark Group is a real estate development, investment, and management firm that owns and manages over 2 million SF of commercial, residential, industrial, and retail space throughout the tri-state area. The firm began investing in the Bronx in the late 1970′s, and has since expanded to other counties and states.
The Bluestone Group (“Bluestone”) is a private investment firm which was formed to capitalize on increasing prospects in the opportunistic real estate market. Bluestone specializes in taking advantage of value-add scenarios such as under-managed properties, developing markets and distressed assets.
Galil Management has been investing in the New York residential real estate market for over four decades. In that time, Galil’s ability to identify opportunities in virtually all market conditions has enabled it to prosper — throughout the booms and the busts. As an investor, Galil has shown extraordinary savvy in identifying undervalued or underperforming residential buildings. As an owner and manager, Galil has transformed its holdings into thriving properties that are desirable to tenants and welcome in the community.
Madison Realty Capital (MRC) is a New York City based real estate private equity firm focused on debt and equity investment strategies with regional offices in key markets including Los Angeles and Dallas. Founded in 2004, MRC has closed on approximately $12 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.
JRT Realty Group, Inc. was established in 1996 as a woman-owned, full-service commercial real estate services firm to address industry-wide supplier diversity initiatives. The firm is certified as a Minority and Woman-Owned Business Enterprise (M/WBE) by the Women’s Business Enterprise National Council (WBENC), National Minority Business Council (NMBC) and New York City Department of Small Business Services. JRT is also certified as a woman-owned business enterprise by Empire State Development and The Port Authority of New York and New Jersey.