HomeStreet Arranges $35M for Seattle Mixed-Use Project
- Jun 16, 2011
Seattle—HomeStreet Capital has arranged $35 million in permanent financing through the Fannie Mae DUS multifamily loan program for The Broadway Building, a five-story mixed-use project with office, residential, retail and student housing space that was developed by Hunters Capital LLC. The Broadway building is part of the Built Smart and Built Green programs.
The property is currently 100 percent leased and has a waiting list for apartments. The Broadway Building has 94 studio, one- and two-bedroom apartments (75 market-rate, 19 affordable) and a student housing wing with 28 units designated for international students attending Seattle Central Community College.
Residential amenities include a common area with a grand piano and an 18-by-37 foot painting by famed glass artist Dale Chihuly. Units have stainless steel appliances, granite counter tops, private decks or patios, and views of either downtown Seattle or Cal Anderson Park. The student housing wing has space for up to 79 students and has its own entrance, elevator and lobby. There are also study areas and laundry facilities.
The ground and first floors have retail and office space with tenants such as Panera Bread, GameStop and the Capital Hill Chamber of Commerce.
Beech Street provides $10M for Baltimore apartments
Baltimore—Beech Street Capital LLC has provided a $10.4 million Fannie Mae Conventional loan for a 274-unit community in Baltimore. The funds were originated by Jacob Katz of Meridian Capital Group LLC. The fixed rate loan has a 10-year term with 9.5 years of yield maintenance and 30 years of amortization.
The property, Fairway Ridge Apartments, was built in 1965 and consists of 27 three-story buildings that overlook golf courses and parks in Baltimore’s Gwyn Oak neighborhood. Steamboat Holding – FWR LLC purchased the asset in 2002 and made $1.5 million in capital improvements following the acquisition.
Eastern Consolidated oversees $17M sale of bank-owned properties
New York, N.Y.–Eastern Consolidated completed the $17 million purchase of 448-452 Broome Street, two contiguous mixed-use buildings in the heart of Manhattan’s upscale SoHo neighborhood.
Situated at the northwest corner of Mercer Street, 448 Broome Street is a five-story elevator loft building with four residential and one commercial unit. 450-52 Broome Street is a nine-story loft building with two elevators, eight residential and one commercial unit.
Retail tenants nearby include Kate Spade, Ugg, James Perse and Scoop. There is potential upside in the rent-stabilized units and 448 Broome Street offers 1,000 square feet of air rights.
Originally acquired in 2006 for $23 million as a potential condo conversion, the new owners could not proceed with redevelopment because of the market downturn. The pair of buildings became troubled assets, so lender Caixanova ultimately reclaimed them in foreclosure three years later.
Late last summer, Eastern Consolidated began introducing to Spanish bank Caixanova bona fide buyers for the property. Keen to dispose of the buildings because a new era of regulatory scrutiny had been instituted in Spain, Caixanova through Eastern Principals David Schechtman and Azita Aghravi and Director Marion T. Jones, sought buyers. Vice Chairman Brian Ezratty successfully procured the buyer.
“Four years ago, Caixanova provided financing for the acquisition and redevelopment of the 20-unit loft, architecturally distinct, property in SoHo’s Cast Iron District,” says Schechtman, “but the recession literally took the wind out of the new original owners’ sails. They defaulted on their loan, the buildings languished.”
“What complicated the deal and delayed the closing, was an imminent bank merger,” says Ezratty, “so the assignment involved staying on the pulse of the Caixanova merger status via Spanish government intervention, and at the same time continually ensuring the buyer that the sale was actually going to materialize. We were diligent in working with our well-capitalized buyer, a joint venture between Tavros Capital and BLDG Management headed by Lloyd Goldman, whom we did not want to lose because of the extended negotiation period.”
Attorneys in the transaction were: Roger Roisman Esq. of Tannenbaum Helpern Syracuse & Hirschtritt, LLP and Gary Kleinman Esq. of Greenberg Traurig for the buyer and Joe Dewey, Esq., partner of| Holland & Knight, for the seller.