Loans Demonstrate Lender Enthusiasm Across Multifamily, Retail and Industrial
Ariel Property Advisors’ Capital Services Division has recently arranged $9.7 million in financing for three diversified properties across the East Coast, including a multifamily community in Pittsburgh, an industrial complex in South Carolina and an open air shopping center in Georgia. The loans exemplify increasing lending momentum for properties across asset types and metro area sizes.
Pittsburgh Multifamily Complex
Ariel arranged $3.7 million for the acquisition and renovation of The Bevan Apartments, a 52,000 square-foot multifamily community located at 1575, 1585 and 1587-1597 Bevan Road, just south of downtown Pittsburgh. The Ariel team secured a 24-month, non-recourse loan for the apartment complex. Financing was arranged by an Ariel Property Advisors team including Matt Swerdlow, Director, Capital Services, and Matt Dzbanek, Director, Capital Services.
The loan funds 80 percent of the acquisition cost plus 100 percent of the borrower’s renovation expenses with interest-only payments. The loan was arranged on behalf of a joint venture between New York-based private equity firm New Wave Capital along with Pittsburgh-based Urban Capital Group. The joint venture has been an active buyer in the Pittsburgh metropolitan area and this represents their fifth acquisition in seven months across 241 units, with two more purchases slated to close by year end. The venture is seeking more value-add opportunities in Western PA.
“With the growth of secondary urban real estate markets and rental properties across U.S. markets, our clients were able to capitalize on a very favorable lending environment that yielded them several financing options to consider,” said Swerdlow. “This loan strategically suited the borrowers’ business plan, which includes select unit renovations over the term of the loan to update the property in an appreciating Pittsburgh metro market.”
Southeast Commercial Properties
Ariel arranged a $3.6 million, 75-percent LTV cash-out refinance loan for Spring Plaza, a 165,000-square foot, 19-unit shopping center in Ellijay, Georgia. The Ariel team secured a 4.5 percent rate on a five-year term and no prepayment penalty for the center, which has 15-percent in-place vacancies. Despite its small
metro area, the property benefits from a reliable, essential tenant base that includes self-storage, a dialysis center, dry cleaning and two Georgia state agencies. Financing for the transaction was arranged by an Ariel
Property Advisors team including Eli Weisblum, Director, Capital Services, and Paul McCormick, Senior Vice President, Investment Sales and Capital Services.
Ariel also arranged a $2.4 million, 69-percent LTV cash-out refinance loan for a 77,000-square foot, four-unit industrial complex in Pelzer, South Carolina. The Ariel team secured a 4.5 percent rate on a five-year term and no prepayment penalty for the complex situated in Upstate South Carolina in the Greenville metro area. The loan benefited from the high national demand for industrial facilities, particularly for logistics use. Financing for the transaction was arranged by an Ariel Property Advisors team including Eli Weisblum, Director, Capital Services, and Paul McCormick, Senior Vice President, Investment Sales and Capital Services.
“Located in smaller, Sun Belt metro markets, the favorable terms demonstrate lender enthusiasm for assets that deliver on in-demand consumer needs, in this case essential businesses and distribution,” said Weisblum. “We were able to leverage the stability of these assets and their long-term growth, coupled with their performance through COVID, to help the respective owners maximize value on these commercially oriented properties.”
About Ariel Property Advisors
Ariel Property Advisors is a commercial real estate services and advisory company located in New York City. The company covers all major commercial asset types throughout the New York metropolitan area, while maintaining a very sharp focus on multifamily, mixed-use and development properties. Ariel’s Research Division produces a variety of market reports that are referenced throughout the industry. arielpa.nyc
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