PROGRESS CAPITAL | Newark, NJ – $9,975,000
16335
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Newark, NJ – $9,975,000

Category
Construction, Multi-Family, Retail
About This Project

 

$9.975 Million Arranged for Re-Positioning of Newark Broad Street Retail/Office Building

 
Newark, NJ – As part of the ‘Living Downtown Redevelopment Plan,’ on June 27th 2016 the Newark Central Planning Board along with the Newark Landmarks and Historic Preservation Commission approved requested variances to the zoning of the existing building at 869-873 Broad Street, at the northwest corner of Williams Street. The four-story building at the site was originally an Oppenheim Collins department store built in 1910, and currently contains a mix of retail and office tenants.
 
Plans unveiled in October of 2016 include a complete gut renovation of the building and the repositioning of floors two through four from office to residential units. The mixed-use asset will add 37 residential units with a shared lobby and 22,000 SF of ground level retail.
 
In July 2017, the current owner of the property engaged Brad Domenico of Progress Capital Advisors to arrange a construction to permanent commercial loan allowing them to complete the building’s transformation and provide ample time to stabilize the property. Domenico was able to secure $9,975,000 in financing representing a 75% LTC including an 18-month interest only period for construction.
 
Additional key terms of this loan include:
 
Construction Terms
 

  • Floating at 1 month LIBOR + 3.50% with a floor of 4.5%
  • 18 Months I/O with 6 Month Extension Option

 
Permanent Terms
 

  • FHLBNY + 225 bps with a floor of 4.625%
  • 10 Year Term
  • 25 Year Amortization
  • Declining Pre-Pay
  • Limited Recourse upon stabilization
  • 10% per annum principal reduction allowed without penalty

 
Progress Capital Advisors loan programs include Fixed Rate Loans, Construction and Specialty Financing as well as Directly Funded Bridge Loans.  With over $40 Billion in closed loans and $100 Million in bridge and direct lending, we will get you to the closing table … plain and simple.  #thatsPROGRESS

 


CONTINUED READING:


 
Read About the Projects 2018 Progress at Multifamily Housing News Online
 
Brad Domenico Arranges Financing for Sale of Historic Ironbound Station Plaza
 
$13.5 Million Secured for Renovation of Broad Street Office Building to Be the New Home of Newark Public Schools Board of Education
 
$9.975 Secured to Acquire and Reposition Broad Street Retail / Office Corner
 
75% LTV on Newark Multifamily Asset
 
$3.8 Million to Acquire Former Newark “Sandstone Building”
 
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