Terrace Capital, Inc. Announces- $8MM Non-Recourse Commercial Mortgage- Class A Office - Brooklyn, NY.
NEW YORK, May 28, 2013 /PRNewswire-iReach/ -- The proceeds of this $8MM, 75% loan-to-value mortgage was used by the borrower, 1733 Sheepshead Bay, LLC, for the repayment of existing debt and equity for the development of several new projects in Brooklyn. The non-recourse, mortgage had a 10 year fixed term and a 30 year amortization schedule. The project sponsors look forward to continuing their notable track record of developing Class A multifamily and office properties in Brooklyn.
The project, a Class A, 30,000 s.f. office complex, is located along Sheepshead Bay road in the Sheepshead Bay section of Brooklyn, NY. The current configuration of the building improvements results from the redevelopment of an obsolete building, which was originally constructed in 1927 and subsequently re-developed in 2011 as a five story, mixed use property with ground floor retail and four stories of professional office space above.
According to a senior underwriter at Terrace Capital, this deal required a unique understanding of the Brooklyn office market, which many lenders were either unwilling or unable to get their arms around. Given the lack of Class A space in the market, the property commands rents in the $35-45/sf range, which translates to a market value north of $400/sf, often a number that makes many lenders uncomfortable in the outer boroughs of New York City. In addition, the city provided the borrower with 15 year real estate tax abatement, via the Industrial & Commercial Abatement Program (ICAP), which further complicated the structuring of the deal.
Intimate knowledge of the New York commercial real estate markets, allows Terrace Capital to tailor capital solutions for developers and investors, where many institutions are unable.
Terrace Capital targets non-recourse senior/subordinate debt and preferred equity with investments starting at $5MM on income producing retail, office, industrial, multifamily, mixed use, self-storage and hospitality properties located throughout the continental United States.
For more information about Terrace Capital and the services it provides, go to www.terracecapital.com.
Media Contact: Media Relations Terrace Capital, Inc., 212-671-1044, firstname.lastname@example.org
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SOURCE Terrace Capital, Inc.
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