By Keith Loria, Contributing Writer
New York—The Chetrit Group has received a $160 million CMBS loan arranged by Meridian Capital Group to refinance a former nursing home on Third Avenue in New York, N.Y.
The five-year conduit financing was provided by Natixis Real Estate Capital and features interest-only payments for the full term.
“The property was appealing to lenders given its prime location on the Upper East Side and its significant size, which can accommodate a large number of students, giving the property a more campus-like feel inside,” Ronnie Levine, Meridian Capital Group’s managing director, tells MHN. “Capitalizing on the current low interest rate environment is a prudent move many investors are making. Furthermore, full-term interest-only payments can now be negotiated for top-quality assets and leading sponsors such as the Chetrit Group.”
Located at 1760 Third Ave., the Chetrit Group began converting the former 19-story nursing home in 2009 and it now consists of 498 state-of-the-art student housing units with a grand total of 247,600 square feet.
The property is strategically located on the Upper East Side, giving its tenants easy access via bus and subway lines to CUNY Hunter College, Baruch College, as well as a number of other educational institutions.
“Additionally, the Upper East Side is home to numerous restaurants and is a popular neighborhood for young professionals,” Levine says. “The property’s location also affords residents quick access to notable global cultural institutions including the Metropolitan Museum of Art and the Guggenheim museum as well as Central Park.”
The property includes a fitness center, library, multiple student lounges, a state-of-the-art security system. A gourmet kitchen is currently being built on the ground floor.
According to Levine, Meridian was able to quickly procure this competitive financing for The Chetrit Group based on the strength of the sponsorship, the high-quality of the asset and a solid prior financing relationship with the lender.