Meridian Capital Group, America’s most active debt broker, arranged $45 million in acquisition and redevelopment financing for the conversion of a dormitory to a multifamily property in the financial district of Manhattan, on behalf of the DSA Property Group.
The two-year loan, provided by Ladder Capital, features a LIBOR-based floating rate, interest-only payments and a six-month extension option. This transaction was negotiated by Meridian Executive Vice President, Avi Weinstock, Senior Managing Director, Ronnie Levine, Managing Director, Josh Rhine and Vice President, Luke Hingson, who are all based in the company’s New York City headquarters.
“On behalf of DSA Property Group we wish to extend our thanks to the team at Meridian,” said Mr. Lifshitz. “They structured a deal uniquely tailored to our risk tolerance,” he added. “Despite our initial misgivings, Josh made us comfortable with the deal, and together with Ronnie walked us through a more complex process. We trusted Meridian to not only get us the best deal, but also the right deal, and they delivered.”
“Meridian’s unique position in the marketplace allowed us to secure strong terms quickly for this conversion project,” explained Mr. Levine. “The redevelopment of 106 Fulton Street will service a unique niche in New York City’s Financial District by providing a high-quality product to its tenants, who are expected to be comprised of predominantly young professionals, at a price point far below nearby and competing luxury buildings,” added Mr. Rhine.
Operated as a student dormitory since 1999, the 15-story, approximately 75,000 square foot property, located at 106 Fulton Street, will be converted to a mid-luxury apartment complex. The ground floor offers 3,643 square feet of retail space with 50 feet of frontage on Fulton Street and 22 feet of frontage on Dutch Street. The neighborhood is undergoing a complete shift from its retail and office roots to a luxury residential area with retail and upgraded public transportation access. The property is situated within walking distance from the A, C, 2, 3, J, Z and 4 subway lines and is a short distance from the Franklin D. Roosevelt East River Drive and the Brooklyn Bridge. Future tenants will enjoy the numerous amenities coming to the area as a result of the opening of the Oculus by Westfield Corporation, the Seaport District NYC by the Howard Hughes Corporation and Brookfield Place.
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