Borrower to Acquire and Complete Construction in Prospect Heights Neighborhood
BROOKLYN, N.Y. – April 12, 2012 – (RealEstateRama) — Hudson Realty Capital LLC (Hudson), a real estate fund manager with more than $2 billion of assets currently under management, has funded a $5.4 million bridge and construction loan involving an apartment building in Brooklyn, N.Y. The loan proceeds were used by the borrower, an experienced builder, developer and multi-family operator, to purchase the property and fund completion of the partially constructed building.
Comprised of 24 studio and one-bedroom rental units, the five-story building is centrally located in Prospect Heights, a strong Brooklyn submarket. Amenities include high ceilings, loft-mezzanines in several units, on-site parking and a common rooftop space.Construction was halted in 2006 when a work-stop order was placed against the original developer by New York City’s Department of Buildings.
“Even in markets like New York City, where capital is readily available, there is still a bifurcation in the market,” said Spencer Garfield, managing director. “Cash-flowing properties are attracting very competitive capital from multiple sources; however, properties that have a value-add component, in the form of renovation/construction or lease-up, are not easily financeable. This is a good example of the latter; and, as a result, Hudson was able to provide the capital necessary to allow this very experienced developer to effectuate the business plan.”
Based in Manhattan, Hudson’s recent New York City transactions include a $10.2 million construction loan for a proposed mixed-use building in SoHo; $8 million in note acquisition financing for four industrial properties in Brooklyn; $5.65 million DPO loan for a mixed-use loft building in Tribeca; and a $14.15 million first mortgage loan for an industrial building in the Bronx.
“We will continue to focus on new originations and purchasing senior debt in our own backyard – and nationally – at a time when our product is in such heightened demand,” added Garfield.
Hudson has closed more than $3.5 billion in transactions since the formation of its initial two funds in 2003. The company focuses on middle-market investments, generally in the $3 million to $35 million per asset range. In addition, the company is active in large loan-portfolio acquisitions and asset management activities.
Headquartered in New York City, Hudson maintains regional offices in Portland, Maine and Fort Myers, Florida. The company has been named among the New York area’s largest privately held companies and largest minority-owned companies, as well as one of the Top 25 lenders nationally.
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Media Contact:
Carin McDonald / 201-796-7788 / carin (at) caryl (dot) com
