Progress Capital Secures $16M Construction Loan for Mixed-Use Development in The Bronx
Abe Mann, Managing Director at Progress Capital arranged a $16 Million Construction Loan to complete a 60,000 SF mixed-use property situated in the Allerton neighborhood of the Bronx.
The site, 653-655 Mace Avenue was acquired in 2018 by Abraham Wieder, Founder of Supreme Equities. The corner property is being developed to house 53 residential units, 30% of which will be deemed affordable housing, plus 16,000 SF of commercial space.
Abe worked with ACRES Capital, who provided financing at nearly 80% LTC, Non-Recourse with carve outs and a competitive floating rate over Libor.
One of the main challenges Abe faced during the loan process, included the ongoing impact resulting from the COVID-19 pandemic. With the volatility in the markets, difficulties in underwriting credit risk and disruption of construction projects, Abe managed to navigate the many hurdles and get to the closing table.
“I want to thank all parties involved, especially the underwriters at ACRES Capital, who helped us get this across the finish line. We had the loan fully approved pre-COVID-19 and we thank ACRES for holding the same structure, rate and terms in place. Although the pandemic caused many challenges, including a significant delay in receiving NB permits, everyone did an excellent job overcoming these obstacles to get the loan closed.” – Abe Mann
653-655 Mace Ave is well-located on a residential street, providing easy access to public transportation via multiple subway lines as well as a nearby Metro North station, and is within proximity to Route 1, I-95 and the Bronx River Parkway. The Property is within walking distance of numerous dining, shopping and entertainment options, including the New York Botanical Garden and the Bronx Zoo. The New York City Health + Hospitals Jacobi Medical Center, Fordham University and the Albert Einstein College of Medicine are also a short distance away.
The Allerton section of the Bronx, a traditionally working-class neighborhood, offers residents an efficient commute to both the east and west sides of Manhattan. Eighty Six percent of Allerton residents are within walking distance to at least one park, which is higher than the citywide average.
PROGRESS CAPITAL is a commercial real estate advisory firm with over $40 Billion in closed loans and $150 Million of directly funded bridge loans. Since 1990, we consistently get our clients to the closing table… plain and simple!
SUPREME EQUITIES is a real estate investment firm that focuses on the management, investment, acquisition and development of multifamily, mixed-use and commercial properties throughout the Northeast.
ACRES CAPITAL is a Long-Island based lending firm that specializes in short-term debt investments while providing creative and tailored solutions for complex financial transactions.