$39M Loan Funds NYC Property Acquisitions

NEW YORK CITY-The Patriot Group has provided acquisition funding to two developers of recently acquired local properties. Focusing on small and mid-sized developers, Patriot has been active in closing structured real estate transactions across the US.

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 the city’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. 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 submarket. The developer is pursuing a redevelopment plan that will include a newly constructed residential building while preserving a fully occupied office building.