Brooklyn, NY – Brad Domenico negotiated $2,961,000 for a valued client to acquire a 4-story multifamily property containing 4 residential units located at 913 Saint Marks Avenue in the Crown Heights section of Brooklyn, NY.
The client contacted Progress Capital for a CRE loan to acquire and renovate a vacant property that was built in 1931. Although this sounded like a standard loan request, Brad quickly discovered that it was quite the opposite.
The landlord intends to make improvements to the property and operate it as an all-inclusive “Co-Living” model. This new concept of common living has become a rising trend to the multifamily market and is considered the answer to the age-old issue of affordable housing. Unfortunately, this posed a challenge for Brad in locating a lender, as most banks are reluctant to provide financing on this fairly new modern-living housing concept.
The Common Living trend is mainly embraced by the younger generation who enjoy living close to cities, traveling frequently with no worries of a house or mortgage. Co-Living is based on renting a room within a building or a house while sharing the provided amenities amongst the other occupying tenants. Accommodations on the property generally include a common area for tenants to access a kitchen, appliances, lounge/TV room and more.
As most trends tend to be short-lived, this new undesirable living situation may also come to an end and eventually disappear altogether. Thus, requiring the property to undergo a reconversion process.
In the end, Brad was able to work with a balance sheet lender that was comfortable with the business plan and model. After negotiating, they provided 75% of the acquisition and renovation financing. This allowed our client to execute his business plan to renovate the building and provide a Co-Living facility under their business model.
Crown Heights is one of Brooklyn’s unsung hot spots and has literally reached new ‘heights’ in the past few years. Compared to neighboring town, this location offers low-cost of living, while conveniently located near transportation and places of interest such as the Brooklyn Museum, the Brooklyn Botanic Garden and the Brooklyn Children’s Museum.
Progress Capital is a leading Commercial Mortgage Brokerage Firm specializing in arranging debt for commercial real estate owners, operators and developers. Since 1990, Progress has successfully closed in excess of $40 Billion in commercial loans and directly funded over $150 Million.
We get you to the closing table…Plain and Simple. #thatsprogress