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Category ArchiveMeridian Capital Group

Natixis Lends $68M to Refinance Bronx Retail Center

Simone Development has snagged a $68.5 million loan to refinance its Throggs Neck Shopping Center in the Bronx, Commercial Observer can exclusively report.

The 10-year CMBS loan closed at a 5.17 percent rate and features interest-only payments, according to Meridian Capital Group, which brokered the financing. A Meridian spokesman declined to identify the lender, but a source close to the transaction said that the loan is from Natixis, the French investment bank.

The mall, located just south of the intersection of the Cross Bronx Expressway and the Hutchinson River Expressway, includes 300,000 square feet of retail, now anchored by a 165,000-square-foot Target outpost. (That store is not collateral for the Natixis loan.) TJ Maxx, Famous Footwear, Mattress Firm, a waxing salon and an electronic cigarette seller number among the shopping center’s other tenants. Its four commercial buildings stand alongside a multilevel parking garage with room for 650 cars.

A mile north of the Bronx–Whitestone Bridge, which connects the Bronx to Queens, the Throggs Neck Shopping Center is almost directly adjacent to Trump Golf Links at Ferry Point, a public 18-hole golf course owned by the Trump Organization.

The deal marks the second mid-size financing Meridian arranged this week, following its announcement of a $54 million Bank of the Ozarks construction loan to Modus Hotels for development of the Pod Hotel in Philadelphia. The Throggs Neck loan was negotiated by Meridian’s Morris Diamant and Tzvi Krieger.

Representatives for Natixis and Simone Development did not immediately respond to requests for comment.

Source: commercial

The Year of the Deal: Drew Anderman’s Team at Meridian Closed $3 Billion in 2017

It’s hard to determine the exact highlights of a year like the one Drew Anderman and his team at Meridian Capital Group had in 2017, when a slew of impressive deals led them to over $3 billion in business. But with so many significant deals over a wide range of property types, several stand out not just as great achievements on their own, but as bellwethers for more of the same in 2018.

Reflecting on a complex $126 million deal in northern New Jersey in 2017 for a class-A multifamily high rise that, when it closed, didn’t have a certificate of occupancy, Anderman, a 20-year veteran of commercial real estate finance, sees it as a potential model for more to come.

“We were brought into the deal when it was probably 85 percent complete,” he said. “We were hired to replace the existing lender with a new lender so that the sponsor could complete a buyout of his partners and complete the project,” he said.

“It’s difficult to replace one construction lender with another mid-stream. We were able to structure a deal with a lender that wanted to start a relationship with the sponsor, knew the market, and was comfortable taking the risk that the certificate of occupancy would come in a timely fashion. It was a very challenging deal, it took a lot of work, but we knew we could get it done.”

The New Jersey transaction is also an example of Anderman’s work with transitional properties, another promising area for him and the Meridian team in 2018.

“These deals require a lot of structure, a lot of thought, and a lot of analysis. They’re very hard to complete. Deals that could use our expertise to be recapitalized will be a theme for us in 2018.”

Anderman is also excited about avenues to overseas capital he initiated in 2017, having just returned from Korea before the New Year.

“We met with 20 leading insurance companies, pension funds, and credit unions,” Anderman said. “One thing we’re working on for 2018 is matching up overseas capital sources that want to invest in or lend on high-quality U.S. assets in seven or eight major cities. One of my associates just did a high-profile deal on Fifth Avenue where a Korean company did an $80 million mezzanine loan on top of the senior. We’re making a lot of inroads there.”

Agency loans were also a focus for Anderman’s team in 2017, and will continue to be in the year ahead.

“We have, and will continue to have, a robust pipeline of agency business,” said Anderman, a 20-year veteran of commercial real estate finance.

“We’re currently working on a $220 million acquisition loan for a portfolio of 25 properties totaling about 4,000 units spread across five states in the Midwest and Mid-Atlantic, which is primarily affordable, Section 8 housing. We will likely finance all or a large part of that portfolio with the agencies. Our business plan for 2018 includes maximizing our agency origination as the agencies continue to expand their offerings.”

His team also saw great success with construction loans over the past year.

“We were involved in one of the larger construction loans in the country in 2017,” said Anderman, referring to a $1.25 billion construction loan he secured for a mixed-use property on Eleventh Avenue in Manhattan, which will feature condominiums, retail, and a five-star hotel. “It was a complex deal funded by an overseas lender.”

This, in addition to a $305 million construction loan for a condominium and retail complex in Lower Manhattan, and an $85 million loan for condominiums on the Upper East Side, made Meridian one of the premier firms for construction loans in 2017.  Anderman looks forward to a repeat performance in 2018.

Geographically, while Anderman’s team has closed loans from coast to coast, the South Florida market was particularly active in 2017 and he predicts it will remain so.

“We’re working on a $500 million construction loan for a 1,500-room hotel and convention center in downtown Miami. We have an exclusive,” Anderman said.

“It would be one of the largest construction loans in 2018, and one of the larger construction loans in South Florida, for sure. It’s a very complex deal, and we’re working on financing it as we speak.”

Anderman’s optimism for 2018 comes not just on the back of his 2017 success, but also thanks to a wealth of his own experience and a team that’s executed so many different types of challenging deals throughout their respective careers.

“My team has a diverse combination of backgrounds. We come from Wall Street to developers, and we understand different aspects of real estate,” he said.

“But also, our success comes from the time and effort we spend understanding what a deal is about before agreeing to take it on. When we put together a financing memorandum, it’s a detailed, thoughtful analysis. We have a meticulous way we approach lenders and what we say to get their attention.”

Source: commercial

Mack Provides $127M Construction Loan for One Prospect Park West

Meridian Capital Group has arranged $127 million in construction financing for the redevelopment of Sugar Hill Capital Partners One Prospect Park West, Commercial Observer can first report.

The loan was provided by Mack Real Estate Credit Strategies. The transaction closed this afternoon, sources told CO.

One Prospect Park West is a nine-story, 169,000-square-foot mixed-use property located on the northwest corner of Prospect Park in Brooklyn.

Sugar Hill purchased the former senior assisted-living facility property in Oct. 2016—paying $84 million, property records show—and will shortly convert it to a luxury apartment building.

The property, formerly known as Prospect Park Residence and owned by Haysha Deitsch, was reportedly in a state of disrepair at the time of acquisition. Sugar Hill’s intention is to restore the pre-war building—erected in 1931—to its former grandeur.

Meridian’s Ronnie Levine, Shamir Seidman and Ben Jacobs negotiated the debt. The brokerage also arranged the acquisition financing in 2016, provided by LoanCore Capital.

“Meridian previously arranged the acquisition financing for One Prospect Park West and is proud to again have represented Sugar Hill Capital Partners in negotiating financing for this transformative project” Levine said in prepared remarks.

Officials at Mack Real Estate Credit Strategies declined to comment. Officials at Sugar Hill could not immediately be reached for comment. 

Source: commercial

Meridian Sells Over 1,000 Parking Spaces and Lists Apthorp Garage Condo

Meridian Investment Sales, the commercial property sales division of Meridian Capital Group, is pleased to present the exclusive offering of The Apthorp condominium parking garage located in the Upper West Side neighborhood of New York, NY. Senior Executive Managing Director, David Schechtman, Managing Director, Lipa Lieberman, and Managing Director, Abie Kassin are representing the seller in this transaction.

Meridian’s Investment Sales team has proven expertise in selling similar properties, including three garage condominium units on the Upper West Side for $50 million, and a parking garage condominium at the Moxy Times Square Hotel for $21 million, which together total over 1,000 parking spaces.

Designed by architects Clinton & Russell for William Waldorf Astor, the Italian Renaissance Revival building was built in the early 1900s and occupies the full block between Broadway, West End Avenue, West 78th Street, and West 79th Street. The monumental building was designated as a New York City landmark in 1969 and was added to the National Register of Historic Places in 1978. The Apthorp was constructed around a large interior courtyard and features life-size limestone sculptures representing the Four Seasons above the building’s central barrel-vaulted entrance, where elaborate wrought-iron gates display a pair of gazelle heads. The property was named for Charles Ward Apthorp, who owned Apthorp Farm, which encompassed about 300 nearby acres of Manhattan in the late 18th century.

Known for its high concentration of cultural and architecturally significant buildings, the Upper West Side is one of New York City’s premier neighborhoods and covers one of the largest geographical boundaries of any Manhattan neighborhood. Operating as a shipping, transportation, and manufacturing corridor throughout much of its early history, the Upper West Side experienced heavy development in the late 19th Century. Today, it is known for its pre-war architecture, eclectic restaurants, and rich cultural life. The property is also just several blocks west of Central Park, two blocks east of the world-renowned Julliard School and the Fordham University Lincoln Center, and is in close proximity to the American Museum of Natural History.

David Schechtman, Senior Executive Managing Director, can be reached at (212) 468-5907 or DSchechtman@meridiancapital.com and the listing for 33-35 West 14th Street may be viewed here.

Source: commercial

Meridian Exclusively Lists West 14th Street Development Site

Meridian Investment Sales, the commercial property sales division of Meridian Capital Group, is pleased to present exclusively for sale 33-35 West 14th Street, a development site with a clear path to vacancy, steps away from Union Square in New York, NY. Senior Executive Managing Director, David Schechtman, Managing Directors, Lipa Lieberman and Abie Kassin, and Senior Associate, Harrison Hochman are representing the seller in this transaction.

Situated at the convergence of New York University and Greenwich Village, 33-35 West 14th Street is a development site boasting 50 feet of frontage on one of the most important East-West thoroughfares in Manhattan. Zoned C6-2M, the two contiguous buildings present a blank canvas for investors; the as-of-right development site offers the immediate opportunity to capitalize on strong demand and exceptional neighborhood fundamentals. Development options include a mixed-use residential building with ground floor retail, a class-A office building, a hotel, and an inclusionary housing development.

A well-traversed destination for residents and visitors alike, the 14th Street Union Square corridor is one of the most trafficked locations in the city and a defining live-work-play neighborhood with unrivaled entertainment, retail, and restaurant selections. Union Square is also one of New York City’s premier cultural hubs, consisting of many architectural and social landmarks. The property is located less than two blocks from the R, W, and N subway lines and the 4, 5, and 6 subway lines at Union Square, and the L, F, M, and PATH trains on 14th Street and Sixth Avenue.

David Schechtman, Senior Executive Managing Director, can be reached at (212) 468-5907 or DSchechtman@meridiancapital.com and the listing for 33-35 West 14th Street may be viewed here.

Source: commercial

NYCB Provides $89M Refi for Two NoMad Office Properties

Kew Management has received an $89 million refinancing package from New York Community Bank for the Townsend and The St. James—two office properties located in NoMad, property records show.

Meridian Capital Group’s Allan Lieberman negotiated the financing, which consists of a seven-year, $33 million loan with a fixed-rate of 3.875 percent and a five-year, $56 million mortgage with a fixed-rate of 3.265 percent.

“With low interest rates available near the same levels as their soon-to-be-maturing loans on the buildings, Meridian advised Kew to structure a recapitalization,” Lieberman said in prepared remarks. “We were successful in providing Kew’s management with a strategy that accomplished their short- and long-term goals.”

The Townsend is a 12-story, 97,300-square-foot office property located at 1123 Broadway and The St. James is a 16-story, 156,000-square-foot office property located at 1133 Broadway. Both buildings were erected in 1896 and are located on the same block between West 25th and West 26th Streets.

Following a previous refinance in July 2013—also provided by NYCB—the properties underwent a capital improvement program, signing new tenants including restaurant La Pecora Bianca and a Rizzoli bookstore.  

“Allan and Meridian have provided invaluable counsel to Kew as we have enhanced our own portfolio and helped make NoMad a vital part of New York’s economy,” Leslie Spira Lopez, the president and CEO of Kew Management said. “They have both the expertise and vision to make Kew’s properties and New York ever greater places in which to do business.”

A spokesman for NYCB declined to comment.

Source: commercial

ACORE Provides $110M Refi for Candlebrook’s King of Prussia Multifamily Complex

Meridian Capital Group has negotiated $110 million in balance sheet financing for Candlebrook Properties251 DEKALBa five-building luxury multifamily complex in King of Prussia, Pa., Commercial Observer has learned.  

ACORE Capital provided the 36-month loan, which features a rate of 275 basis points over 30-day LIBOR and full term, interest-only payments. The financing takes out a Wells Fargo construction loan, which was set to mature in November but included a one-year extension option. 

251 DEKALB is a five-building, 641-unit property located at 251 West Dekalb Pike. The multifamily complex sits on 26 acres of land at the highest point in King of Prussia. Its amenities include an Olympic size swimming pool and sun deck, a fitness center, a private club room, a game room, sports amenities and a business center.

“We weren’t intending on refinancing the property at this time because we felt we still had time under our construction loan and we felt  there was more expansion in the market for growth in our rental rates,” Josh Levy, a managing director at Candlebrook, told CO. “But as we approached the end of the year we thought it wasn’t a terrible time to be refinancing, given the uncertainty in the financial markets and what’s likely to be a run up in rates.”

Speed of execution was an important factor in the selection of ACORE as lender, Levy said: “ACORE had a fantastic product and were able to close in 30 days. They really understood the asset and were so able to underwrite it quickly, and their terms were extremely competitive and flexible. It allowed us to refinance the property, take out some of the equity we’d invested and refund it to our investors and also create flexibility for future refinancingsif and when we see the rent growth that we’re expecting on the asset.”

Meridian’s Abe Hirsch, Ronnie Levine and Akiva Friend arranged the debt.

“We were thrilled with Meridian’s guidance and ability to execute in an extraordinarily compressed timeframe during a generally difficult time of year, given the holidays,” Neil Rubler, the president of Candlebrook, said in prepared remarks.

“The quality and location of 251 DEKALB dominated our conversations with lenders when we brought this transaction to market and allowed us to achieve a very efficient 36-month loan for this exceptional asset,” Hirsch said.

Candlebrook acquired the property for $70 million in 2014 in partnership with Lubert-Adler of Philadelphia, according to the Philadelphia Business Journal. The development firm then undertook an extensive renovation of the buildingformerly known as The Marquiswith the intention of restoring some of its former glory. Constructed in the 1960s, The Marquis had fallen into a state of severe disrepair before Candlebrook acquired it and renovated building systems, common areas and apartment units.

“It was in really terrible condition,” Levy said. “We had to empty out all the units and redo everything in the building. We spent about $60 million on the renovation of the property in order to bring it to modern standards. We tried to bring it back to the roots of the history of its architecture.”

west buildings ACORE Provides $110M Refi for Candlebrook’s King of Prussia Multifamily Complex
The West Buildings of 251 DEKALB. Photo: Candlebrook Properties

Construction of 251 DEKALB was completed in the summer of 2017 and Candlebrook is currently in the process of finalizing amenitization packages for the property, which is 70 percent leased.

The property is Candlebrook’s first in the area. Once a sleepy, suburban market that didn’t have any Class-A multifamily properties, the area has transformed with several companies moving their headquarters to the area and subsequently boosting the population, Levy said: “We were excited about the building because it had wonderful bones and it’s very hard to find a high-rise building in an affluent suburban community that isn’t in such bad condition that you can really reimagine it. So, it was an exciting project to begin with, but the continued growth of the Philadelphia market and the expansion of the Philadelphia suburbs also presented an exciting opportunity for us to expand our business into.”

Officials at ACORE weren’t immediately available for comment.

 

 

 

 


Source: commercial

Meridian Arranges $68M Bridge Financing for LA Office Building

Southern California-based J.H. Snyder Company has sealed a $68 million bridge loan from refinance its debt on a recently built North Hollywood, Calif. office building, Commercial Observer can exclusively report.

Minnetonka, Minn.-based Pine River Capital Management provided the three-year, interest-only loan, sources close to the transaction told CO. Officials at the alternative investment firm did not immediately respond to a request for comment.

Meridian Capital Group negotiated the financing on behalf of the owner. The brokerage declined to name or confirm the lender on the deal.

The nine-story, 179,000-square-foot building, at 5250 Lankershim Blvd., went up in 2011 and is fully occupied, according to J.H. Snyder. Tenants include a Kaiser Permanente medical clinic, a co-working space managed by Regus and the Art Institute of California, a non-profit university that offers degrees in design and media production.

“This property has maintained 100 percent occupancy for years, despite coming to market during the peak of the recession,” Mike Wise, a senior partner at J.H. Snyder, said in a statement. “In addition to our long-standing tenant and leasing relationships, that performance also highlights the strength and improvement of the [North Hollywood] submarket over the last decade.”

The Los Angeles basin’s decentralized geography spreads the region’s office tenants over a wide breadth of neighborhoods, from Downtown Los Angeles in the north-center of the basin to Beverly Hills and Santa Monica to the west. The refinanced office building, north of the Hollywood Hills in the San Fernando Valley, has performed well because of its transportation access, according to its owner.

“The building is in a good location on a main thoroughfare,” Jerome Snyder, the founder of J.H. Snyder, told CO. “It’s right next to the subway that goes downtown.”

The Los Angeles Metro’s Red Line stops a block and a half north of the Lankershim building, making it a popular transit option for the Art Institute’s students especially, Snyder said.

Los Angeles being Los Angeles, the building also features a 6-story parking garage with more than 700 spaces.

Even given the building’s strong occupancy numbers, leasing considerations presented a challenge in the refinancing, according to Meridian officials.”Although there is no current vacancy, the majority of the tenants roll over [in] the next several years,” Seth Grossman, a Meridian managing director, said in prepared remarks. “It was critical to tailor a loan with ample structure to prepare for that role, while simultaneously maintaining maximum flexibility to allow our client to operate the property on their terms.”


Source: commercial

CCRE Provides $53M in CMBS and Mezz Financing for Pennsylvania Multifamily Property

Meridian Capital Group has arranged $52.5 million in financing for Riverview Landing at Valley Forge—a luxury multifamily property in Eagleville, Penn.—on behalf of Liss Property Group, Commercial Observer has learned.

CCRE provided the debt, sources familiar with the transaction told CO, which combined a $44 million senior CMBS loan with a $8.5 million mezzanine loan. 

Officials at Meridian declined to confirm the lender’s identity or the individual loan amounts, but said the 10-year financing package has a blended rate of 5.68 percent and full-term interest-only payments. Additionally, an 82.5 percent loan-to-value was achieved by combining the senior CMBS loan with the mezzanine debt. 

Riverview Landing at Valley Forge is located at 1776 Patriots Lane in the Valley Forge suburb of Philadelphia. The property consists of 310 units across six buildings. Property amenities include a swimming pool, grilling stations, a fitness center and a 5,000-square-foot clubhouse with a kitchen, a fireplace and a billiard room.

Meridian’s Russ Drebin and Steven Halpert negotiated the deal. 

“The proceeds of this financing package were used to retire a bridge loan that was used to renovate approximately 30 percent of the units,” Halpert said. “The success of this capital improvement initiative allowed Meridian to secure favorable permanent financing with mezzanine debt that includes funds allocated for the renovation of the remaining units.”  

As previously reported by CO, Liss Property Group—a Pennsylvania-based, family-owned real estate investment firmpurchased the apartment complex for $55 million from Texas-based Milestone Apartments REIT in October 2015. Greystone provided a $46 million loan for the acquisition and introduced Liss Property to its joint venture equity partner in the transaction, Azure Investments.

“We identified the project and came in very aggressive because we knew we would be an underdog in purchasing it,” William Liss, the founder and chief executive officer of Liss Property, told CO at the time of the acquisition. “We haven’t owned a property of this size and the purchase price was about double what we have bought in the past. We recognized the tremendous upside.”

A spokeswoman for CCRE did not immediately return a request for comment.


Source: commercial

TD, Lakeland Bank Lend $50M on NJ Multifamily Development

Meridian Capital Group has negotiated $50 million in construction financing on behalf of developer SAMTD Woodbridge for The Grande at Metro Parka luxury multifamily development in Iselin, N.J., Commercial Observer can first report.

TD Bank and Oak Ridge, N.J.-based Lakeland Bank provided the 36-month, limited-recourse loan, sources familiar with the transaction told CO, which features a LIBOR-based floating rate and full-term interest-only payments with two 12-month extension options. TD Bank contributed $35 million, while Lakeland Bank contributed $15 million, sources said. 

When complete, The Grande at Metro Park will consist of 232 units across three, five-story buildings at 3 Ronson Road in Iselin. The development will also include 8,200 square feet of retail space. Property amenities will include an outdoor pool, a gym, a yoga room, a lounge, a juice bar, bike storage rooms, pet washing stations and a grilling area.

According to Patch, construction began in August and is expected to wrap in late 2018.

SAMTD Woodbridge is also planning a second phase of the project, which upon completion will bring the total units in the development to 355. 

“This is a very important project that will allow residents of the community to live within close proximity to public transportation, major highways and businesses,” Thomas Ponticelli, a vice president in TD Bank’s commercial real estate group told CO. “Multifamily buildings of this nature are very limited in this area. The Grande will meet the needs of the growing population of middle and upper middle income residents within close proximity to the Metro Park train station.”

Meridian’s Emil DePasquale arranged the financing.

“In a market where construction lending has become more challenging to obtain, Meridian was able to effectively advocate for our client and negotiate a favorable terms including limited recourse and a flexible prepayment penalty,” DePasquale said, in prepared remarks. “The most important achievement in this transaction was [our] ability to syndicate the loan by identifying a participant lender which will also provide for an expanded relationship with the borrower in the future.”

Officials at Lakeland Bank did not respond to a request for comment.


Source: commercial