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Category ArchiveMeridian Capital Group

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

Dissecting the Deal: Securing $46.3M for Fractured Miami Condo Acquisition

When a sponsor sought a $46.3 million bridge loan for a property he didn’t fully control, it was clear that obtaining financing would be tricky. So he called Drew Anderman and his team at Meridian Capital, knowing that their financing expertise would lead to a solution.

During his 20-year career in commercial real estate financing, Anderman has proven to be one of the most successful dealmakers in the industry, having closed over $20 billion in financing throughout his years at various major institutions, including Deutsche Bank, Credit Suisse, and CIBC World Markets. Anderman joined Meridian three years ago and focuses with his team on unique deals of great size and complexity.

A Deal Years in the Making: 50-Unit Luxury Condominium on Miami’s Collins Avenue

A sponsor sought acquisition financing for 8995 Collins Avenue in Surfside, a neighborhood just outside of Miami Beach, Florida. The property was a 36-unit condominium building selling for $56 million – with closing costs and other expenses driving the final price to $71 million. The sponsor intended to tear it down and build a new, 13-story, 50-unit luxury condominium and was seeking a loan for 65 percent of his total capitalized costs at closing.

The sponsor had spent several years buying out individual condominium owners at the property, and was now in contract to purchase 31 of the 36 total units. With a minimum of 80% ownership of the units, the sponsor was now able to dissolve the condo board under Florida law. While there was every reason to believe he would eventually obtain control of the five remaining units, it was still a question mark hanging over any attempt to obtain a loan.

Here’s where Meridian’s expertise came in.

Uncertainty Looms: Potential for Holdouts and No Immediate Cash Flow

The desired acquisition loan came with several challenges, beginning with the uncertainty over the five unpurchased units. While the law seemed to be on the sponsor’s side, even one holdout could cause problems for any potential lender.

“There are plenty of lenders who would say you have to buy 100 percent of the units before we can close a loan,” says Anderman. “They can’t afford to have their company associated with this project if, for example, someone sues the sponsor, and then sues the lender for trying to evict them, even though they may have the law on their side.”

Another hurdle – the loan would only be for the first phase of the project, meaning this loan would not have an immediate source of income at completion.

“This was not going to be a loan where they were going to tear the building down, then immediately build a brand new one so the sponsor could sell units and pay it back,” says Anderman. “This was a loan to buy the building. After closing, the sponsor would have a vacant building, then pay the loan back by going out to the market and obtaining a construction loan, to then demolish the building and to construct a new one. A potential lender had to be comfortable with the idea of a vacant building with no income for quite some time.”

With Research to Mitigate Lender Concerns, A Bidding War Ensues

Armed with Meridian’s extensive transactional experience in the Miami marketplace, as well as Anderman team’s recent activity there, they supported this knowledge base by performing deep due diligence with local approaches and investments sales lenders, noting recent comparable loans, observing how the lending market had softened over the previous year, and identifying lenders that remained faithful to the area and were comfortable with creatively structured deals.

The Meridian team compiled a list of ten potential lenders who fit their criteria. After initial approaches, the list was narrowed down to two very interested candidates with competitive offers. Anderman utilized his negotiating expertise to create intense competition between the lenders, and ultimately obtaining a very favorable rate for the sponsor on a $42 million, four-year non-recourse loan from the division of a major bank.

“It was a challenge to find the best possible interest rate for the client, since it was effectively a non-cash-flowing deal, and the higher the rate, the more money would get added onto their basis,” says Anderman. “The client was sensitive to not paying more than a certain rate. Our job was to get an interest rate that was as competitive as possible so that it would not be circular – adding more and more costs.”

In the end, Meridian’s vast market expertise paved the way for a successful outcome for the sponsor.

“Well-respected and knowledgeable lenders became very interested in this deal,” Anderman says. “That goes to the strength of how we presented it and the market we created for it. We made sure we understood as much about the deal going in as possible. We were happy to have achieved our goal, in what was starting to become a challenging time in the Miami Beach/South Florida for-sale condominium market.”


Source: commercial

Iintoo’s Jeff Holzmann Talks Hands-on Crowdfunding for Commercial Real Estate

At a time when crowdfunding for real estate projects is becoming de rigueur, there’s a new competitor in the mix—and it means business. Tel Aviv-based iintoo (yes, that’s how the company name is stylized) launched its U.S. operations in May and has been busy sourcing high-yielding real estate opportunities for investors since. To date, iintoo has raised $96 million for 33 projects—primarily multifamily projects in the U.S., although it has also funded two U.K. projects. The firm differentiates itself from its peers with its hands-on approach to deals for the life of an investment, from cradle to grave.

Commercial Observer: What’s your background?

Jeff Holzmann: I was born and raised in the U.S., but I spent almost 20 years living in Israel. I moved there as a child, went to school there and spent time in the military. Many years later, when I returned to the U.S., I found myself at this very unique junction—being American but with Israeli citizenship, speaking both languages fluently and understanding both cultures.

I was the chief executive officer of a venture capital fund [Genius Technologies] for a while, but my specialty was always in tech. So, before iintoo I worked for a publicly traded internet company [IncrediMail] and started its operations in the U.S. It was a sizable operation with 120 employees, but the first branch was in my home. The office number was my home number.

How did the iintoo opportunity materialize?

Iintoo approached me about a year ago. They were looking for someone with my experience in capital markets and in senior management roles who knew the Israeli culture and could bridge the cultural gap, if you will. Iintoo has been very successful in Israel but is now branching out to the U.S. where the model is different, the competitive landscape is different and the regulatory environment is different. Things you are allowed to do in Israel [from a regulatory perspective] you aren’t allowed to do in the U.S., and vice versa.

How would you describe iintoo?

Iintoo is a REIMCO—a real estate investment management company. The average person in the U.S. throughout American history never really had access to investments in commercial-grade real estate. Sure, if you’re a wealthy guy maybe, you own your home; if you make a lot of money, maybe you own a second home as an investment. But you’re not a real estate mogul. I used to use [Donald] Trump as an example—now that he’s president it’s different—but you see his name on high-rise buildings, and you’re simply not at that level in the big leagues.

In 2012, the JOBS act changed things by allowing [crowdfunding] companies like iintoo to do general solicitation. Crowdfunding platforms take a little money from you, a little money from her and group it all together into a sizable multimillion-dollar position in properties—but that’s where the story ends for so many other firms. Iintoo takes it a step further, and that’s why we describe it as a REIMCO.

How so?

We manage the investment from start to finish and are very hands-on. For example, I ask developers [whose projects are being funded] for access to the bank account for the management company for the property. I want to know where every dollar goes. If they think that’s too harsh, that’s okay; we don’t have to work together. But I want it. And I want their social security number to do a background check. Because we provide 95 percent of the funds that they need, I can afford to require these things. Everything has to be legit, it has to be transparent and so you have to give me access like a real partner.

What kind of deals are your investors participating in?

The deals that we do are commercial grade and at least 40 units—so for example, mixed-use assets that are retail on the bottom and residential [multifamily] on the top. The risk is spread out across multiple tenants. We vet the deals, and we underwrite them. We look at everything, and we guarantee the money.

You’re guaranteeing investor returns?

God forbid, no! We’re certainly not guaranteeing returns. It’s the other side of the equation—when we meet a developer we’re guaranteeing investment in the project. And, as I said, we ask a lot from them in return.

What’s the duration of iintoo’s investments?

All of our deals are two to three years. So investors know that within that time they’ll get their money back.

Why such a short term?

We like the short term. We don’t know what’s going to happen in seven to 10 years. Markets are cyclical, it’s a lot easier to manage investments over two to three years.

How many U.S. deals do you have under your belt since May?

We have 33 deals, three of which went full cycle already. That means they made money while investors held them, and now they were sold, and the investors got paid back. Another one will sell this month. We’re currently averaging 14.5 percent returns per year, which is pretty stellar.

Has the investor appetite increased for crowdfunding opportunities?

Enormously.

What’s driving that?

The alternatives, or lack thereof. If you have some disposable income, where else can you get 15-percent-per-year-returns. This platform is not a get-rich-quick scheme; you won’t invest with iintoo and turn around next year and own all of New York City. But if you can afford to invest, this is a great alternative, and the risks are managed.

Is there a minimum investment?

Yes—$25,000—but there’s no maximum.

Which asset types won’t you touch?

We don’t do the marijuana warehouses or operations. It’s completely legal in Colorado, so you have these properties that were warehouses before and are now logistics centers that could easily be worth tons—you could triple your money by investing in them, but you could also lose all of it if Trump decides to change the legislation and enforce closures. It’s too risky an investment. We like multifamily complexes because people have to live somewhere. We stay away from Class A buildings because if there is a downturn they get hit first. We’re like Class B buildings because if there is a contraction people move back into them, and if there’s an expansion, people in Class C buildings can move up.

How do developers perceive the crowdfunding model?

We find that they love it. As I said, we have a lot of demands that we make of them, so a lot of [developers] tell us no.  

What’s iintoo’s relationship with Meridian Capital Group?

They invested in the company, and they own a lot of stock in it. We’re also located in [the same] building [at 800 Third Avenue]. Meridian has unbelievable deal flow that we have access to. They did $36 billion of financing last year alone.

What’s next on the agenda?

Global expansion. The traction we’ve had in the U.S has been great. Without a doubt the challenge is now adding even more countries. Every country is different, the competitive landscape is different and the culture is different.

You have a couple of U.K. properties: Did Brexit affect your interest there?

We wanted to have offices in the U.K. when it was part of the EU. But now with Brexit it’s no longer the case. There was also its effect on the British pound. Israeli investors made a double-digit return, but when you factor in the currency conversion, they didn’t make that much. The smartest thing is to find another development in the U.K. for them to roll their funds back into. when those investments end.


Source: commercial

TPG Provides $126M Bridge Loan for NJ Mixed-Use Property

Arilex Realty has received a $126 million bridge loan from TPG Real Estate Finance to refinance The Centre mixed-use property in Cliffside Park, N.J., sources told Commercial Observer. 

Merdian Capital Group’s Daniel Heumann, Drew Anderman and Ben Nevid negotiated the deal. The brokerage declined to comment on the lender’s identity or provide further details on the loan’s terms.

The Centre is a 15-story property located at 702 Anderson Avenue, comprising 314 residential units and 50,000 square feet of retail space. The building’s amenities include a roof deck, a pool, a fire pit, a public plaza, a clubroom, a library, a media room and a fitness center.

“Meridian refinanced the existing construction loan prior to project completion to finish the construction, rent and stabilize the property,” Anderman said in prepared remarks. “Adding to the uniqueness of this deal is the fact that the building is constructed on a ground lease and Meridian structured a future funding option to allow the sponsor the flexibility to purchase the fee at any point through the loan term.”

Meridian also structured favorable release terms with the lender to allow the sponsor to sell off various components of the project at any point during the loan term, Anderman said.

The brokerage has been actively securing financing in the Garden State. As first reported by CO, last month Meridian arranged a $70 million loan from Investors Bank for the repositioning of Bell Works, a 475-acre, 2-million-square-foot office campus in Holmdel, N.J.

A spokesman for TPG declined to comment. Officials at Arilex Realty could not be reached for comment.


Source: commercial

Meridian Arranges $29M Capital One Refi for Nashville Multifamily Property

Capital One Multifamily Finance has provided $29 million in agency financing to refinance the Creekstone Apartments multifamily property in Nashville, Tenn., Commercial Observer can first report.

Meridian Capital Group’s Jacob Katz, Zev Karpel and Daniel Hofstedter secured the 12-year Fannie Mae loan, which has a fixed rate of 4.23 percent and six years of interest-only payments.

Owned by White Eagle Property Group, Creekstone Apartments is a 316-unit multifamily complex located at 266 Stewarts Ferry Pike in Nashville, Tenn. It sits on 23.6 acres of wooded land and comprises 260,950 square feet of residential space. Amenities include a 568-space parking lot, a business center, a clubhouse, a laundry facility, a dog park, an outdoor swimming pool, a barbeque area, two tennis courts and a volleyball court.

“Because of the property’s central location and its well-maintained amenities, the client immediately recognized the opportunity to acquire an asset at a favorable basis and enhance operational performance by applying their property management expertise,” Katz said, in prepared remarks. “White Eagle Property Group’s diverse portfolio and proven track record helped Meridian negotiate favorable terms and six years of interest-only payments.”

“We were happy to work with Meridian to find a solution that worked and that fit the borrower’s needs,” said Jeff Lee, president of Capital One Multifamily Finance.  “There are many positives about both Creekstone and White Eagle Property Group and, as always, our team worked hard to achieve this positive result.”

Officials at White Eagle Property Group could not immediately be reached for comment.

 


Source: commercial

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Source: commercial