Queens Luxury Building Lands $116M Loan
- Jan 24, 2019
Madison Realty Capital has received a $115.5 million bridge loan for The Drake—a 417-unit community in the Queens neighborhood of Rego Park, N.Y.—from Benefit Street Partners Realty Trust (BSPRT).
The financing is comprised of a three-year, interest-only, floating-rate loan with senior mortgage and mezzanine components and holds an interest rate floating over LIBOR.
“BSPRT was able to move incredibly quickly to close a very complicated transaction, utilizing our middle market, industry leading flexible balance sheet,” Michael Comparato, BSPRT’s head of commercial real estate, said in prepared remarks. “We provided the senior mortgage, senior mezzanine and junior mezzanine all under one roof, which provided the borrower excellent execution.”
The financing will be utilized to wipe out existing debt on the property and fund upgrades including high-end unit renovations, the addition of new amenity space and a revamping of the lobby and fitness center.
Originally constructed in 1960 as Saxon Hall, the property was acquired by Madison Realty Capital in November 2016, as part of a $135.5 million deal.
Located at 62-60 99th St., the Queens property features studios, one-, two- and three-bedroom units, with many having private balconies. Amenities include a fitness center, playground and laundry facilities. The 16-story building also boasts commercial space and a garage with 224 parking spaces.
“BSPRT was pleased to work with the owner to close a highly structured, unique loan on a trophy asset in the New York metropolitan market, and we look forward to the asset having future success,” Matthew Jacobs, BSPRT’s chief credit officer, said in a statement.
According to Marcus & Millichap’s most recent New York City Multifamily Market Report, new construction activity slowed this past year, accounting for a strong recovery in rent growth for apartment units in Queens, as well as the rest of the city. This is expected to continue into 2019, as supply in projected to outpace household formation.
Image courtesy of Benefit Street Partners Realty Trust