Jewel Capital Arranges $9,000,000 Permanent Loan for a Retail Property in Brooklyn, NY
Jewel Capital arranged $9,000,000 in refinancing for a retail building in Brooklyn, New York. This permanent loan was structured to two separated parts: one $7,500,000 first mortgage loan and one $1,500,000 second mortgage loan. The 11-year first mortgage loan, featuring with an interest rate of 4.3%, is a permanent loan to refinance a previous loan used to purchase the property. The 11-year second loan, featuring an interest rate of 5%, is a cash-out refinance loan for the borrower’s other investments. Both of the loans are interest-only in the first year. The property has a mixture of ownership structure: fee simple and leasehold estate. Deeply understanding our client’s financing needs, Jewel Capital negotiated with potential lenders and approached the most suitable one to achieve optimal terms.
The property is a retail parcel located at Bensonhurst of Brooklyn, New York. The site was improved with a one-story, plus mezzanine, retail building constructed in 1962. The property was owner-occupied by a former supermarket chain, which went bankrupt in November 2015. In March 2016, our client purchased the property from a bankruptcy sale at a below market price. The retail building was recently renovated and was upgraded to 31,716 square feet in March 2017. The complexity of ownership structure created a significant challenge for securing the financing.
Bensonhurst is a large, multiethnic neighborhood in the southwestern part of the New York City borough of Brooklyn, in the United States. Bensonhurst has the largest population of residents born in China of any neighborhood in New York City and is now home to Brooklyn's second Chinatown. It includes the area bounded by 86th Street, 14th Avenue, 60th Street, McDonald Avenue, Avenue P, and Bay Parkway. The neighborhood accounts for 9.5% of the 330,000 Chinese-born residents of the city, based on data from 2007–2011.
JEWEL CAPITAL is a fast-growing commercial real estate capital advisory firm based in New York City. We are specialized in structuring and placing debt, mezzanine and equity financing in Northeast region. We are dedicated to provide our clients with tailored, best-in-class financing solutions.