The first loan is a $17 million senior mortgage to Real Estate Equities Corp. for the acquisition and repositioning of a 24-unit apartment building located on 14th Street in Manhattan's Meatpacking District. Patriot provided Real Estate Equities Corp. with the financing to acquire the property, as well as an additional funding commitment to reposition and upgrade the building. In addition to planned improvements for the underutilized street level space, the building also includes approximately 10,000 sf of air rights. This is Patriot's second acquisition and repositioning loan to this developer.
The second loan is a $12 million Senior Mortgage to Peter Moore Associates for the acquisition and redevelopment of a site on 10th Avenue in the rapidly emerging West Chelsea neighborhood in Manhattan. Dan Harrington, managing partner of Patriot's real estate division tells GlobeSt.com that the company was attracted to the changing environment here. Patriot recognized that recent zoning changes which allow a change of use from manufacturing to residential, along with the opening of the Hudson River Park, have spurred economic development in this Manhattan sub-market. The developer is pursuing a redevelopment plan that will include a newly constructed residential building while preserving a fully occupied office building.
"Patriot rapidly closed a highly structured loan for us in a short time frame so that urgent timelines set by the sellers could be met," says Peter Moore, CEO of Peter Moore Associates. "Patriot's streamlined infrastructure and decision-making process enabled it to function as a true partner and respond quickly to our needs, particularly during this challenging credit environment."
Harrington tells GlobeSt.com that recently, the lending environment has dramatically shifted away from loans originated for securitization and toward balance sheet lenders. "It's been a good time for us," he explains. "There has been an increased demand for financing from groups like Patriot."
Harrington continues that "these transactions contained key positive elements that Patriot has historically focused on for repositioning lending situations, including an improving location, acquisition financing, a seasoned development team, and a thorough and well-defined business plan."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
