The Capital Services Group for Ariel Property Advisors recently arranged loans totaling over $15.6 million throughout the New York metropolitan area for one condo construction project and the refinancing and acquisition of seven multifamily properties.
Matthew Dzbanek and Matt Swerdlow, both Senior Directors with Ariel Property Advisors, arranged the transactions with support from Associates Rhea Vivek & Anthony Priest.
Ariel arranged a $3.5 million cash-out refinance for 30 Archer Avenue in Mount Vernon, NY, Westchester County, on behalf of the Sason Organization. The property was acquired two years ago for $2 million and underwent a full gut renovation. The financing arranged consisted of a non-recourse, five-year fixed rate loan, which closed in four weeks and featured full term interest only payments. Additionally, the financing with a nonbank lender didn’t require a depository relationship. Anthony Priest, an Associate in Capital Services, underwrote this transaction.
Ari Sason from the Sason Organization said, “This project presented itself opportunistically through relationships and we quickly seized the opportunity. By utilizing the vertically integrated nature of our construction affiliate, Sason Builders, we were able to acquire and renovate this property from a condemned and uninhabitable state to a fully occupied property in under two years. Ariel Property Advisors arranged both our acquisition and permanent fixed rate financing for this project. We were able to return most of our investors initial capital investment and the property should now cash flow attractively on a yearly basis. We are very pleased with the result, especially given the stricter banking environment and significantly higher interest rates than when we began in 2022.”
Sason is a privately-owned real estate investment firm with offices in Miami and New York City. Sason invests across real estate asset classes thematically, with a focus on emerging U.S. markets. The firm’s principals have an extensive track record of success across investment and portfolio management, capital markets, development and principal construction. Sason has completed $1 billion of transactions over the last decade across real estate, public and private market opportunities.
Additional loans and their terms arranged by the Ariel Capital Services team included the following:
- $6 million loan to refinance a Bed-Stuy Portfolio, Brooklyn: Ariel arranged a cash-out refinance for this fully occupied four-building multifamily and mixed-use portfolio consisting of 22 residential and five commercial units across more than 18,000 square feet in the Bedford Stuyvesant section of Brooklyn. The five-year loan was non-recourse and featured a 6% fixed rate that was locked at term sheet with 30-year amortization at 65% LTV.
- $2.8 million condo construction loan in Morningside Heights: Ariel arranged a bank construction loan for a 5,800-square-foot condo redevelopment in Harlem on behalf of AMH Construction and DMA Contracting Inc. The project, which was acquired all cash, entails a rear extension and vertical expansion and full gut renovation of the property – a strategy completed successfully several times by AMH Construction & DMA Contracting. An out-of-state bank provided the borrower a 24-month full term interest only loan subject to 65% LTV as a condo sell out with no rental fallback analysis and no depository relationship requirement. Anthony Priest, an Associate in Capital Services, underwrote this transaction.
- $2 million refinancing loan in Upper Manhattan: Ariel arranged a cash-out refinancing loan for a nine-unit, recently gut renovated, 65% occupied multifamily property in Hamilton Heights. The five-year loan featured a 6.75% fixed rate, one year of interest only, 30-year amortization and 70% LTV. The lender closed in the middle of lease up with 5/9 units occupied.
- $1.24 million acquisition loan in Brooklyn: Ariel arranged a loan to finance the purchase of a free market multifamily property in the Bushwick section of Brooklyn. The seven-year fixed rate loan includes a 6.35% interest rate and 30-year amortization. Rhea Vivek, an Associate in Capital Services, underwrote this transaction.
For more information about the New York City investment sales market, please refer to Ariel’s latest research reports covering the New York City investment sales market: Ariel Property Advisors’ Q1 2024 Multifamily Quarter In Review New York City, Manhattan 2023 Year-End Commercial Real Estate Trends report, Brooklyn 2023 Commercial Real Estate Trends report, Bronx 2023 Commercial Real Estate Trends report, Queens 2023 Commercial Real Estate Trends report and Northern Manhattan 2023 Commercial Real Estate Trends report.
About Ariel Property Advisors
Ariel Property Advisors is a New York City-based commercial real estate services and advisory company offering expertise in three core areas: Investment Sales, Capital Services and Research & Advisory. Our Investment Sales Group specializes in all major commercial asset types throughout the New York metropolitan area, the Capital Services Group provides clients nationwide with custom-tailored financing solutions and the Research & Advisory team delivers timely market reports, empowering both our professionals and clients. Additionally, our recent strategic partnership with GREA (Global Real Estate Advisors), a nationwide network of independent real estate investment services companies, further expands our reach and capabilities. To learn more, please visit us at arielpa.nyc.
