$9.975 Million Secured for Re-Positioning of Newark Broad Street Retail/Office Building
Brad Domenico of Progress Capital Advisors Arranged a Construction to Permanent Loan for the Borrower with an 18-Month Interest Only Period.
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 qegkj 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