NEW YORK CITY—Meridian Capital Group has negotiated a nearly $45 million loan and over $15 million in joint venture equity for the construction of a multifamily property in the Astoria section of Queens.
The three-year interest-only loan, provided by CIT Real Estate Finance, features a LIBOR-based floating-rate and two one-year extension options. The joint venture equity was provided by Glenmont Capital Management. The transactions were negotiated by Meridian Capital group managing director Tal Bar-Or.
The site will be delivered vacant and the sponsor plans to build a 143,320 square foot structure that will include parking, retail, storage, a community facility and 114 rental apartments. Currently an operating parking lot, the site was acquired in an off-market transaction and has been under continuous ownership and management for nearly 35 years.
The retail component is supported by the nearly 325 feet of frontage along 31st street. The building will feature sound-proof construction, on-site parking, a media room, a fitness and yoga room, grocery storage, tenant storage, pool decks and more.
“We are pleased to have arranged non-recourse construction financing at 70% loan-to-cost for our clients. With a new development team, developing location and significant retail component, it took a well-informed lender to understand the merits of this project and we are fortunate to have been able to work with Matt Galligan, president of CIT Real Estate Finance, to cultivate what we believe will be a long-lasting relationship between the sponsors, CIT and Meridian,” says Bar-Or.
He continues, “We were able to bring the full capital stack together for our clients and Meridian will continue to grow its equity capital markets practice in 2015. The ability to procure equity and debt in tandem has been well received by our clients and further enhances our ability to add value as an advisor.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
