The Capital Services Group at Ariel Property Advisors recently secured two significant loans totaling over $14 million.
These loans will fund an affordable housing complex in East Harlem, NY, and an Industrial Outdoor Storage (IOS) site in Largo, FL.
Senior Directors Matt Swerdlow and Matt Dzbanek facilitated the refinancing of the Olga Mendez Apartments, a 77-unit affordable housing complex located at 1652 Park Ave and 91 E 116th Street in East Harlem. The $9.4 million loan benefits from a 420(c) tax exemption and is governed by three NYS & NYC regulatory agreements. The lender, Fannie Mae via PGIM, offered a non-recourse, fully assumable loan with three years of interest-only and seven years of fixed financing at a 5.56% interest rate. “Despite today’s challenging market, both assets attracted significant lender interest,” Swerdlow stated. “The Olga Mendez Apartments will continue to provide essential affordable housing to the East Harlem community.”
The Capital Services Group also secured a $4.675 million loan for purchasing a 10-acre site in Largo, FL. Previously a cement factory, the property will now be utilized for Industrial Outdoor Storage (IOS). The loan, featuring 75% LTC and 18-month non-recourse terms, closed within 30 days. IOS refers to industrial-zoned land used for outdoor storage of vehicles, construction equipment, and containers, usually including a small office and tool storage building. Parcels range from two to ten acres with a building-to-land ratio below 20%, also encompassing truck terminals for efficient goods transfer.
Ari Sason of the Sason Organization, the borrower for the Largo site, expressed enthusiasm about the transaction. “We identified an opportunity to acquire heavy industrial zoned land at a significant discount compared to comparable parcels. We de-risked this acquisition by securing a master lease with a leading provider of truck, trailer, and container parking solutions before closing. We continue to seek similar opportunities in Florida markets to reduce risk and add value for our investors.”
For more information on the Northern Manhattan investment sales market, refer to Ariel’s latest research reports: Ariel Property Advisors’ Q1 2024 Multifamily Quarter In Review New York City and Northern Manhattan 2023 Commercial Real Estate Trends report.
Photo credit Ariel Real Estate.
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