BCN Acquires Prime Manhattan Space for Condo Development

BCN Development signs prime Manhattan space for a new condo; Emeritus enters a purchase agreement with Blackstone for 24 assisted-living communities; and Beech Street Capital originates $12.65 million Fannie Mae loan for property in an improving area.

9 East 16th Street

New York—BCN Development has signed a contract to acquire 9 East 16th Street in Manhattan for $17 million. The 50-foot-wide building is less than a block off of Union Square. BCN will convert the building into condominiums under the leadership of CEO Craig Nassi.

The finished product will include one-, two- and three-bedroom modern residences with 13-foot ceilings and arched windows with park views. The lobby will also be retrofitted with an elevator.

BCN expects the deal to close by the end of summer with the conversion beginning shortly after. The acquisition comes just a few months after BCN Development bough 184 Joralemon Street in Brooklyn Heights and 45 East 33rd Street.

Emeritus to acquire 24 assisted-living communities

Seattle—Emeritus Corporation has entered a purchase and sale agreement with Blackstone Real Estate Advisors to acquire 24 assisted-living communities comprised of 1,867 units. The assets are currently owned by a joint venture between Blackstone and Emeritus, with the companies holding 81 percent and 19 percent interests, respectively. Emeritus has operated the facilities since late 2006 under management agreements for a fee equal to 5 percent of collected revenues.

“We have operated these communities under a management agreement that incentivized us to improve operations. That incentive represents a significant portion of the equity required to complete this purchase transaction,” says Dan Baty, Emeritus chairman. “We are pleased that the joint venture with Blackstone has proven to be so successful, and we look forward to delivering similar results on the much larger Sunwest portfolio of 144 communities.”

The purchase price to acquire Blackstone’s 81 percent interest is approximately $99 million. Final closing of the transaction is subject to routine closing conditions.

Beech Street originates $12.65M Fannie Mae loan for property in Hartford, Conn.

Hartford, Conn.–Beech Street Capital LLC provided a $12.65 million Fannie Mae conventional loan to refinance the Capitol View Apartments in Hartford, Conn.

The fixed-rate loan has a term of 10 years with 9.5 years of yield maintenance and a 30-year amortization schedule payable on an actual/360 basis. Ralph Herzka was the Meridian broker, and Nathan Burlingame was the Beech Street closer.

Constructed in 1955, the Capitol View Apartments are located in the historic Asylum Hill area of Hartford, near such cultural centers as the Mark Twain House and Museum and the Harriet Beecher Stowe Center. The high-rise complex includes 264 residential units as well as eight retail and office spaces. Since the property was acquired in 2008, the owners have made almost $1 million in capital improvements, encompassing both exterior work and interior finishes.

“This transaction shows that Beech Street is ready to take advantage of opportunities to lend in improving markets,” remarks Christine Phillips, Beech Street’s underwriter on the transaction.

Asylum Hill attracts a solid base of tenants who appreciate the neighborhood’s proximity to major employers and transportation. Capitol View amenities include a fitness room, garage parking, 24-hour lobby staff, and a ground-floor deli and convenience store.

Beech Street is a Fannie Mae DUS lender, a Freddie Mac Program Plus® Seller Servicer and an FHA Multifamily Accelerated Processing (MAP) lender.