RYCO Capital Gets $128M to Finance 9 Manhattan Properties

RYCO Capital has scored a $128 million loan so it can finance an acquisition consisting of a mix of multifamily and retail properties in Manhattan, New York.

They are located on 2nd Avenue between St Marks and East 10th Street. The 153,800-square-foot properties represent 22 retail and 171 residential units.

The Manhattan portfolio is located just two miles away from East Village and has proximity to New York University. Plus, plenty of hotels, transportation, and restaurants are close by.

Walker & Dunlop, which said it has been a longtime client to RYCO, advised on the deal. The interest-only floating rate bridge loan came courtesy of Derby Copeland Capital.

While NYC’s commercial market struggled overall with sales in the first quarter – the multifamily sector shined. Dollar volume in multifamily rose to over $1.4 billion, a 23% increase year-over-year, and soared 36% compared to the previous quarter’s sales figures, according to Ariel Property Advisors.

Also, Gregory Kraut, CEO of KPG Funds, recently projected that NYC CRE property values in the next 12 to 18 months will skyrocket between 50 and 60 percent, as the Federal Reserve is expected to cut interest rates.

“The New York City apartment market continues to demonstrate exceptional fundamentals, with our submarket maintaining some of the lowest vacancy rates in the nation,” Jonathan Schwartz, senior managing director and co-head of New York Capital Markets at Walker & Dunlop, said in a statement.

“We are thrilled to have represented RYCO Capital, a team we know will drive significant value to this portfolio for years to come.”

According to Walker & Dunlop, the submarket where the Manhattan properties are located, has just a 1.5 percent vacancy rate.

James Ryan, CEO of RYCO said he anticipates strong demand in East Village to continue.

Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, and Sean Bastian of Walker & Dunlop, served as exclusive advisors for RYCO.