Finkelstein Timberger Secures $186M Bronx Refi

Fannie Mae provided the loan for 16 apartment properties through PGIM Real Estate’s agency lending program.

2544 Valentine Ave. Image courtesy of Black Bear Capital Partners

Finkelstein Timberger East Real Estate (FTERE), a residential owner and manager in the Bronx, N.Y., has obtained $186.4 million in permanent financing for 16 apartment properties totaling 1,126 total units. Fannie Mae provided the loan through PGIM Real Estate’s agency lending program, and the transaction was arranged by Black Bear Capital Partners (BBCP).

The refinancing deal comes after FTERE scored a $62 million loan from the same source to refinance nine properties in July. The new loan features an average fixed rate of 2.9 percent for 12 years with partial interest-only payments, followed by 30-year amortization schedules.

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Secured through Fannie Mae’s Green Rewards program, which rewards owners for committing to curb their properties’ energy or water usage, the loan also entails the installation of a new photovoltaic system, cutting-edge LG solar panels and Enphase inverters across the portfolio. FTERE invested more than $30 million back into the portfolio, including $25 million in capital improvements and $5 million in solar installations.

The investments aim at creating “prime workforce housing” from the portfolio of 16 properties scattered through the Bronx, which include 3940 Carpenter Ave., 211 Bedford Park Blvd., 2885 Briggs Ave., 2908-10 Valentine Ave., 2544 Valentine Ave., 2935 Holland Ave., 116 Henwood Place, 1056 Sherman Ave., 1495 Morris Ave., 2100-2120 Wallace Ave., 2765 Kingsbridge Terrace, 1791 Grand Concourse, 2230-38 Grand Concourse, 2294-2300 University Ave., 1000 Anderson Ave., 2701 Webb Ave.

Financing streak

BBCP’s Bryan Manz, Emil DePasquale, Phil Bowman, and Jack Cohen arranged the financing package. FTERE, which has a total portfolio of more than 3,500 units, has previously worked with BBCP to refinance its Bronx properties, including the $62 million transaction in July.

In March, the financial advisory firm arranged $53.9 million in permanent financing for a six-asset FTERE portfolio, with Morgan Stanley providing the loans. FTERE and BBCP also partnered on refinancing transactions this past January and February, with Morgan Stanley providing loans of $43.8 million and $77.7 million, respectively.

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