Meridian Capital Group, America’s most active dealmaker, arranged $36.5 million in financing for the acquisition and construction of a mixed-use property located in the Harlem neighborhood of New York, NY on behalf of The Jay Group.
The 36-month non-recourse loan, which was provided by a balance sheet lender, was negotiated by Meridian Senior Managing Director, Morris Betesh, and Vice Presidents, Dov Jeremias and Daniel Belecen, who are all based in the company’s New York City headquarters.
Located at 54-62 West 125th Street, the five-building site is advantageously located adjacent to the newly built Whole Foods in Harlem. When complete, 56 West 125th Street will feature one retail unit and 141 residential apartments, 30% of which will be affordable units, spanning a total of 140,000 gross square feet. The property will receive a FAR bonus from the inclusionary housing program and will qualify for both 421-a and ICAP tax benefits for residential and commercial units, respectively. 56 West 125th Street is conveniently less than one block from the 2 and 3 trains at the 125th Street station and is a short walk to the 4 and 5 trains at East 125th Street and Lexington Avenue.
Harlem, which is bounded by West 155th Street to the north, West 110th Street to the south, Fifth Avenue to the east, and Morningside Avenue to the west, offers residents a quiet, community-oriented atmosphere and is known for its American jazz, literature, and civil rights history.
“Non-recourse construction financing is difficult to come by with traditional lenders,” said Mr. Betesh. “However, well capitalized borrowers with ideally located projects can still achieve attractive non-recourse financing.”
Founded in 1991, Meridian Capital Group, LLC is one of the nation's largest commercial real estate finance and advisory firms. Meridian is headquartered in New York with offices in New Jersey, Maryland, Illinois, Florida and California. Working with a broad array of capital providers, Meridian arranges financing for transactions ranging from $1 million to more than $500 million for multifamily, co-op, office, retail, hotel, mixed-use, industrial, healthcare, student housing, self-storage and construction properties. www.meridiancapital.com