JEWEL CAPITAL ARRANGED $1,450,000 REFINANCE LOAN IN BROOKLYN, NY
JEWEL CAPITAL, a fast-growing commercial real estate finance and advisory firm based in New York City, has arranged a $1,450,000 refinance loan secured by a 4,740 SF mixed-use rental building (The Property) located in Brooklyn, NY. Jewel Capital successfully secured the low interest rate at 3.60% before Fed approved a quarter-point increase in its target funds rate. The term of the loan is 25 years with no origination fee required.
Interest rate low at 3.60%: On Dec 16, 2015, Fed raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 percent and 0.50. Jewel Capital had the foresight to settle the Commitment Letter with the lender on Nov 4, 2015, finalizing the terms and interest rate low at 3.60%. The financial benefit of the borrower was guaranteed.
Low LTV at 58.00%: The Property is located at Sunset Park, also known as the Brooklyn’s Chinatown with rapidly growing Chinese population. The Property is a 3-story mixed-use rental building consists of 4 residential units and one retail unit with the total area about 4,740 SF. The subject building is currently 100% occupied with stable rental income. The estimated market value of the property is $2,500,000 as per the appraisal report dated 11/20/2015, with low LTV at 58.00%.
No origination fee required: No origination fee charged to the borrower.
The borrower is a single-asset holding company solely owned by a real estate investor, who is currently managing 4 properties with 100% occupancy for years including the subject property. The purpose of the refinancing is to cash-out for real estate investments.
Sunset Park is a neighborhood in the western section of the borough of Brooklyn. It is predominantly Puerto Rican, Mexican and Chinese, with other Hispanics, Indians and Norwegians comprising the area’s population as well. The core of the Hispanic population is west of the 5th Avenue, while the center of the Chinese population (now referred to as Brooklyn’s Chinatown) is from 7th Avenue east to Borough Park. According to the 2010 United States Census, Brooklyn gained 39, 374 residents between 2000 and 2010, and Sunset Park accounted for 6,190. Asians increased by 62 percent in Sunset Park East.
The Property is a 3-story mixed-use rental building consists of 4 residential units and one retail unit constructed in 1926. The gross area of the building is about 4,740 SF. The subject building is currently 100% occupied by a Chinese supermarket with 10-year lease and 4 residential units with one-year leases. The building is in an excellent location with intensive population and convenient transportation. The property is surrounded by three subway lines—D, N, R among which two are running express to downtown Manhattan in 20 minutes. The convenient living environment and transportation attract more and more young professionals and working class living here.
JEWEL CAPITAL is a fast-growing commercial real estate finance and advisory firm based in New York City. By leveraging our unique lender relationships developed over the years, we are able to provide our clients with tailored, best-in-class financing solutions primarily in the Greater New York metropolitan area. Our sweet spot as real estate advisers for commercial mortgage or development projects is from $1MM to $50MM. At Jewel Capital, we are committed to guide our clients through every step of the deal-making process, and we hope to add a “Personal Touch to Your Financing Needs”.
For more information about JEWEL CAPITAL, please contact:
Tel.: +1 (646) 441-8281
Fax: +1 (347) 535-1314