Lument recently arranged three agency transactions totaling $18.5 million for multifamily communities in Brooklyn, New York. Working with an experienced sponsor, Lument closed a $3 million Freddie Mac Small Balance Loan for 900 East 18th Street, a $6 million Fannie Mae conventional loan for 1436-1438 Ocean Avenue, and a $9.5 million Fannie Mae conventional loan for 991-993 President Street. Kristian Molloy, vice president in Lument’s New York office, led the transaction.
“We were able to take advantage of the ample benefits provided by an agency refinance to consolidate the sponsor’s existing debt with a permanent debt structure that was substantially more attractive,” said Molloy. “The new loans feature lower interest rates fixed near historic lows, competitive partial term interest-only periods, and cash-out proceeds for the borrower.”
All three loans feature 10-year terms and 30-year amortizations. Two of the loans feature interest-only periods, 48 months for 1436-1438 Ocean Avenue and 24 months for 900 East 18th Street.
The sponsor has nearly 40 years of real estate experience and had purchased all three properties within the past several years. As a result of the portfolio refinance, the sponsor is better able to execute its business plan of maximizing cash flow while using the additional savings towards property maintenance and renovations.
Ephraim Chambre, of Chambre & Company, Inc., worked as the broker on the transactions.
“Collaborating with Lument was a pleasure, as we were able to execute on a timely and economical solution that greatly improved the fiscal outlook for these three Brooklyn communities,” Chambre said.
The three communities feature a total of 118 units. Both the 1436-1438 Ocean Avenue and 991-993 President Street properties are mid-rise communities. The 900 East 18th Street community consists of 22 units within one, four-story walk-up. Originally constructed in the span of 1925 to 1927, all three properties have undergone substantial improvements in recent years.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. For more information, visit www.lument.com.
Michael Ratliff | Marketing Director
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