CapitalSource Finance LLC of Chevy Chase, MD provided a four-phase $57.3 million senior mortgage loan to the investors for the West Village site, which also includes a parking lot leased to a third party operator on a long-term lease. Approximately $350 per ft will go toward the acquisition and $150 per ft for the conversion process says Chris Kelly, managing director for the real estate lending group for Capital Source. In addition, Capital Source has allocated additional funding for the individual investors covering up to 60% or 70% of the costs associated with meeting their construction needs. "The developer will deliver a white box," he tells GlobeSt.com and the investors will have the opportunity to design their own residences. He anticipates the condos will be completed within 18 to 24 months.

The building's current use is as a multi-tenant office building. Prior to closing on the acquisition a master lease was terminated and it is anticipated that the sub-tenants will vacate by the end of 2005, according to CapitalSource. This loan represents CapitalSource's second financing for PMA associates in the last year. Placement of the loan was arranged through the New York office of Carlton Advisory Services Inc.

"We were able to quickly close on this transaction with a four-phase loan structure enabling the borrower to quickly and seamlessly transition through the acquisition, entitlement, renovation, and interior renovation phases of the project with pre-arranged funding commitments, resulting in lower transaction costs and ultimately increased profits," Dan Harrington of CapitalSource's New York City office.