TODAY’S DEALS: Ares Commercial Co-Originates $50.5M Acquisition Loan
Ares Commercial co-originates an acquisition loan; Ariel Property Advisors sells six buildings in Manhattan and the Bronx; and NorthMarq Capital funds a $13.7 million Freddie Mac financing at 80 percent of purchase price.
Sacramento, Calif.—Ares Commercial Real Estate Corp. has co-originated a $50.5 million first mortgage loan collateralized by a Class A community in Sacramento, Calif. The transaction involved an $18.7 million B-Note loan retained by Ares, and a $31.8 million A-Note retained by a commercial bank. The property was picked up by a Northern California-based private investment group.
“This transaction is a great example of our ability to offer larger scale solutions to our clients,” says Bruce Cohen, president of Ares Commercial Real Estate Corp. “We demonstrated our versatility and breadth of relationships by bringing in one of our commercial banking partners and structuring an A/B- Note financing.”
The transaction brings Ares Commercial’s loan portfolio to $251.8 million in outstanding principal as of mid-November, when the deal closed.
Ariel Property Advisors Sells Six NYC Buildings
New York—Ariel Property Advisors has sold six buildings for $5.2 million in Upper Manhattan and the Bronx. Private investors acquired all the assets.
Two five-story walk-up buildings at 606 St. Nicholas Avenue and 129 Edgecombe Avenue in Central Harlem sold for $2.1. The assets total 15 units. A five-story walk-up building at 316 E 126th Street in Harlem sold for $1.5 million. It contains 10 two-bedroom units. A portfolio of three walk-up buildings in the Bronx also sold for $1.6 million. It contained 22 units, two stores and four garage spaces.
NorthMarq Gets $13.7M in Freddie Mac acquisition financing at 80 percent
San Antonio, Texas—Luke Donahue, vice president of NorthMarq Capital’s Phoenix Regional office, arranged acquisition financing of $13.7 million for Enclave Apartments, a 384-unit market-rate multifamily community located at 2555 NE Loop 410 in San Antonio, Texas.
Financing was based on a 10-year term with two-years interest only followed by a 30-year amortization schedule and was arranged for the borrower, Enclave Communities LP, by NorthMarq through its seller-servicer relationship with Freddie Mac. The loan provided the client 80 percent of purchase price financing and a modified prepayment structure.
“We were pleased to have an opportunity to work on another loan for this repeat client,” said Donahue.