Clarion, Taconic Snag $110M for Bronx Apartment Refi

Capital One provided the loan to refinance the massive Eastchester Heights Apartments.
Eastchester Heights Apartments, Bronx, N.Y.

Eastchester Heights Apartments, Bronx, N.Y.

New York—The owners of Eastchester Heights Apartments in the Bronx have received a $110 million floating-rate, interest-only loan from Capital One to refinance the community. Entities controlled by Taconic Investment Partners and Clarion Partners own the large property, which consists of 118 four-to-six story apartment buildings. The loan has a 30-month initial term, with the option to extend in six-month increments for an additional 30 months. HFF Senior Managing Director Evan Pariser led the team that arranged the financing for the borrower.

“We are always pleased to have the opportunity to build on existing relationships, and that was certainly the case with Taconic and Clarion,” said Paul Kesicki, a senior vice president for Capital One’s Commercial Real Estate Group. “Since acquiring Eastchester Heights, these firms have done a tremendous job creating additional value through property improvements.”

The new loan replaces the previous $86.5 million mortgage the New York Community Bank provided to Taconic and Clarion for their $133 million acquisition of the property from Urban American in 2007, The Real Deal reported.

When Taconic acquired the 1,416-unit community, it completed a series of renovations and upgrades. These included: renovating about half of the apartments; installing apartment electric meters; converting boilers to natural gas; and replacing stairwells in many common hallways. It’s most recent improvement was the completion of a two-year, 200,000-square-foot roof and parapet replacement.

The community was originally built in 1934 and contains studio, one-, two- and three-bedroom units.

Image courtesy of Taconic Investment Partners