DEAL OF THE DAY: Eastern Consolidated Completes $8.1M in Sales of Construction Loans for Stalled Condo Projects
- Mar 22, 2010
Brooklyn, N.Y.—Eastern Consolidated brokered the purchase of defaulted loans to make possible the development of two stalled luxury condominiums in the Williamsburg neighborhood Brooklyn.
In two separate transactions, Eastern Consolidated Senior Director David Schechtman and Associate Geoff Rand, represented the buyer, Nachas 180, LLC, of the two loans obtained to cover the cost of constructing the condominiums.
Both off-market deals sold for a combined $8.1 million, were completed on an all-cash basis and represent the recapitalization of the Williamsburg developments which were well-conceived, but fell prey to the market downturn in end-unit pricing, and high construction costs.
The two new luxury condominiums, both of which qualify for a 421a tax abatement, are 390 Lorimer Street, a 28-unit building featuring 24 roof cabanas and 14 parking spaces; and 12-14-16 Monitor Street, a 24-unit residential building featuring high end finishes and upscale amenities.
“The lender in both instances mitigated its losses well by choosing a buyer who was able to work with the existing developer and lienors to maximize the funds available to purchase the debt and restart the projects,” says Schechtman.
Attorneys in the transaction were Jennifer Silvestro, Esq., Lazer Aptheker of Capital One Bank, and Anthony Simari, Esq., of Smith, Buss & Jacobs, LLP for Nachas 180, LLC.