Two Non-Recourse Loans Totaling $4,000,000 Secured in Refinance of Brooklyn Multifamily Buildings
Working with Brad Domenico, Partner at Progress Capital, Duke Properties sought to refinance two recently acquired and subsequently renovated multifamily buildings in Brooklyn to recapture vested equity while retiring existing debt on the properties.
The first building, 393 Bleecker Street, is a 5,400 SF 3-story walk-up building with 6 residential units. The units include (1) 3-bedroom/2-bath, (4) 3-bedroom/1.5 bath and (1) 2-bedroom/1-bath apartments. The property was completely gut renovated and fully leased at the time of the refinance. Domenico, working with Sabal Financial, negotiated a $2,100,000 non-recourse permanent mortgage with 12-Months interest-only and a 5-year fixed rate at 3.84%, a 20-year term and 30-year amortization. The loan includes a 5-4-3-2-1 prepayment schedule and represents a 70% LTV.
The second property, located at 18-21 Putnam Avenue, encompasses 5,600 SF split into 6 residential units. At the time of the refinance 4 of the 6 units had been completely gut renovated with upcoming plans to renovate the remaining 2 apartments. Domenico, again working with Sabal Financial, secured a $1,900,000 non-recourse permanent mortgage, representing a 77% LTV and accompanied by a 24-month interest only period with a 4.35% rate fixed for 7-years. The term of the loan is 7 years on a 30 year amortization and a 5-5-4-4-3-2-1 prepayment schedule.
With the combined loans, Duke Properties was able to recapture over $1,000,000 in equity to fuel future property acquisitions and re-positioning.
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
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