$9.975 Million Secured for Re-Positioning of Newark Broad Street Retail/Office Building

NEWARK, N.J. - Oct. 5, 2017 - PRLog -- As part of the 'Living Downtown Redevelopment Plan,' on June 27th 2016 the Newark Central Planning Board along with the Newark Landmarks and Historic Preservation Commission approved requested variances to the zoning of the existing building at 869-873 Broad Street, at the northwest corner of Williams Street. The four-story building at the site was originally an Oppenheim Collins department store built in 1910, and currently contains a mix of retail and office tenants.

Plans unveiled in October of 2016 include a complete gut renovation of the building and the repositioning of floors two through four from office to residential units. The mixed-use asset will add 37 residential units with a shared lobby and 22,000 SF of ground level retail.

In July 2017, the current owner of the property engaged Brad Domenico of Progress Capital Advisors to arrange a construction to permanent commercial loan allowing them to complete the building's transformation and provide ample time to stabilize the property. Domenico was able to secure $9,975,000 in financing representing a 75% LTC including an 18-month interest only period (with optional 6 month extension) for construction at a floating rate of 1 Month LIBOR  + 3.5% with a floor of 4.5%.

Once the renovation/construction period is over the borrower will enter into a permanent mortgage with a 10 year term at a rate of FHLBNY +225 bps with a floor of 4.625% based on a 25 year amortization schedule. Upon stabilization of the building the borrower will have limited recourse, declining prepay and an optional 10% annual principal reduction allowed without penalty.

Progress Capital Advisors loan programs include Fixed Rate Loans, Construction and Specialty Financing as well as Directly Funded Bridge Loans.  With over $40 Billion in closed loans and $100 Million in bridge and direct lending, we will get you to the closing table … plain and simple.  #thatsPROGRESS