GlobeSt.com EXCLUSIVE: Financing Comes Through for Condo Construction

SHEEPSHEAD BAY, NY-Commerce Bank provided a refinance/construction loan of $23.6 million to Emmons Avenue LLC to repay its existing acquisition/construction loan and to complete the construction of a 75-unit residential condominium complex here. The acquisition price was $7.6 million, total hard construction cost is $14.9 million and the total soft cost is $6.8 million. The total project cost is $29.3 million.

“The project was originally designed as two phases and the previous financer committed to fund Phase I, but the economics of the transaction, and of the market, made the developer want to build both at the same time,” explains Suzanne Kliegerman, senior vice president, real estate lending division, Commerce Bank. “The previous financer was constrained with loan amount, but Commerce Bank was able to come in and fund the full amount and the borrower wanted to establish a relationship with a local bank like Commerce.”

Located along the waterfront in this section of Brooklyn, at 3128 Emmons Ave., the condominiums will be located in 23 townhouse-style buildings and one 29-unit, three-story building. The property will also feature 44 underground parking spaces, 22 above ground parking spaces and 45 dock spaces. The 18-month loan includes two six-month extension options. Construction should be completed in 12 to 14 months.