Progress Capital negotiates $86.25M construction loan
NEW YORK, NY — Brad Domenico and Kathy Anderson of Progress Capital negotiated an $86.25 million construction loan for YYY 62nd Street LLC, a joint venture between Joy Construction and Maddd Equities, to construct and fit out a new seven-story office building at 330 East 62nd St. in Manhattan. The 90,000 s/f office building is slated for a community facility. The building is currently under construction and is a through block site acquired from the Archdiocese of New York between First and Second Ave. “We are very pleased to have worked with Natixis and Progress Capital on this financing. With our diverse development platform of multifamily, hospitality, workforce housing and community facility projects, it is crucial we have lenders and advisors who are able to provide creative and value add capitalizations to help us execute on our business plans,” mentioned Eli Weiss, Managing Member of YYY 62nd Street LLC. The loan is a 24 month interest-only construction loan with two 1-year extensions floating over LIBOR. Loan terms include limited recourse that burns off once the building is occupied. The loan represents a 90% loan to project cost ratio with a flexible prepayment option which was a major consideration in choosing a lending partner. Domenico and Anderson negotiated terms of the loan with Jared Zimmel, of Natixis. Doug Heitner, Isaac Stern and Abe Seaman-Baldaro of Kaskowitz Benson and Torres LLP represented the borrower while Ralph Arpajian, Daniel Lisk and Jeremy Chubak of Haynes Boone LLP represented Natixis throughout the closing process. In a other news, a valued client approached Domenico to refinance the existing debt on their mixed-use asset located at 115-02 Jamaica Ave. in the Richmond Hill section of Queens. The mixed-use property is a 38,000 s/f fully occupied 3-story brick retail/office building.
Each tenant is currently subject to a lease agreement with 10+ years remaining on initial terms. Domenico negotiated a $7 million non-recourse permanent mortgage loan representing a 60% loan to property value with 1 year of interest-only at 4.25%. The loan is subject to a 7 year term with a 5 year extension option, a fixed rate of 4.25%, 30 year amortization and a 5-5-4-4-3-1-1 Prepayment Schedule.