$32,000,000 Floating-Rate & JV Equity Financing
Altman Warwick arranged $32,000,000 in combined debt and equity financing for the acquisition of a 20,000 square foot parcel of land located on the northwest corner of Frederick Douglas Boulevard and 125th Street in Manhattan, NY. The developer acquired a one and partial 2-story retail building with the intention of demolishing and re-developing them into a four-story, mixed-use commercial building containing approximately 120,000 square feet. A $25,000,000, 7-year, floating-rate first mortgage was secured to finance the site’s acquisition and pre-development costs. Altman Warwick arranged the favorable 80% loan-to-cost, floating-rate financing with no interest rate floor. Additionally, Altman Warwick was successful in negotiating recourse limited only to a debt service guaranty despite the fact that the property had very limited cash flow and was partially vacant. Altman Warwick arranged and negotiated a strategic 50/50 joint venture partnership with a major NYSE-traded REIT. The REIT contributed $7,000,000 of equity capital without any preferred return or IRR requirements. Additionally, they offered significant benefits to our client. Due to their vast tenant relationships, the REIT helped drive tenant interest to the property and they enhanced the debt terms by offering their strong balance sheet to the transaction.