Terra Capital Provides $6M Mezz Debt to Pay Down Condo Construction Loan

By Anuradha Kher, Online News EditorNew York–Terra Capital Partners, a New York-based real estate investment finance and management company, has closed on a $6 million mezzanine loan that will provide capital for a condominium conversion project called the Carriage House in the Chelsea neighborhood of Manhattan.The property, located at 124 West 24th St. between Avenue of the Americas and Seventh Avenue, is a former parking garage structure that is being enlarged and converted into 24 luxury condo residences The term of the loan is 12 months and the sponsor is Broadmill Development Group, an investment partnership company.“The sponsor is using part of the loan to retire original construction debt and the remainder to invest in another deal, located in the Park Slope section of Brooklyn,” says Dan Cooperman, managing director of Terra Capital.“Contrary to general assumptions about the credit market, we are having no trouble raising capital for mezzanine funding, despite the overall contraction among institutional mortgage lenders,” says Cooperman.“Private-equity sources recognize the current situation as a good opportunity to invest in relatively short-term mortgages that fill a need. In light of current market conditions, we are actively seeking to expand our mezzanine loan portfolio by acquiring and originating new loans on income producing and value-added properties,” he adds.