We have financed several larger and challenging projects over the 2007/2008 period, including the conversion of a B office building to residential condominiums for a property located at 114 East 32nd Street, NY, NY.
We obtained high leverage construction and interim financing in the sum of $92,000,000.00 for this first time developer. Similarly, we arranged the refinancing of a mortgage for property located at 535 West 51st Street, NY, NY, by obtaining a $79,000,000.00 loan which resulted in massive cash out for our customer.
We also were able to exclude the collateral of an adjacent parking lot from the mortgage for this property (despite the fact that is served the property), in order to allow the customer to have this property free and clear for further development of the property. The basic property consisted of 240 C level apartments, and the occupants of the apartments all received significant rent subsidies from the federal government.
We were able to overcome that market challenge and also obtained a 10 year mortgage a rate of interest just under 5.5%, and the mortgage was on an interest only basis for the entire 10 year term of the mortgage.
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Development of a 250 room
Hampton Inn
Center City, Philadelphia
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| We also raised 100% of the funds (debt and equity) for the development of a 250 room Hampton Inn in Center City, Philadelphia with total development costs of $28,000,000.00.
The primary takeout lender in this case was a pension fund, the subordinate loan was obtained through a rarely used HUD 108 program and the construction loan was obtained through a commercial bank. We also obtained a grant from the Economic Development Division of the Commonwealth of Pennsylvania, which was the only grant ever given by Pennsylvania in connection with the development of a hotel. The intercreditor agreement among the three lenders was very complex and particularly difficult due to the involvement of HUD yet we lead the business negotiations with respect to this agreement. We also raised the equity for this project through a real estate investment trust and assisted our client through all facets of the funding and development, inclusive of the structuring of the joint venture agreement.
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| We closed on several industrial loans that had a variety of seemingly insurmountable problems. Our client is the largest private owner of industrial real estate in the United States. Our first loan involved a 300,000 square foot warehouse facility in a secondary location near Harrisburg, Pennsylvania. The seller had taken back a 90% loan for six months in connection with the acquisition of the property and needed to quickly repay this purchase money loan. Our client had obtained a lease from a small warehousing company that had the right to terminate its lease in June of 2002. Yet, we were able to obtain nearly 100% financing for this customer despite the building being virtually vacant.
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