Dealmaker: Meridian Capital Group Arranges $20M for Mixed-Use, Hotel Assets
Michael Tucker firstname.lastname@example.org
Meridian Capital Group, New York, arranged $20 million for two mixed-use properties in New York's East Village neighborhood and a Brooklyn, N.Y., hotel.
In the East Village, Meridian Associate Avi Gorbacz negotiated $11.5 million in financing for 51 and 217 East Houston Street, two five-story, eight-unit mixed-used buildings. A balance sheet lender provided a five-year cross-collateralized loan at 3.76 percent.
"This transaction happened in tandem with an acquisition and obtaining a significant cash-out was critical to the success of both deals," Gorbacz said, noting Meridian negotiated nine months of interest-only payments to enhance cash flow as well as a lower rate to increase returns on both assets.
Both properties are close to the B, D, F and M subway lines at the Broadway-Lafayette Street Station, the R and W lines at the Prince Street Station, the F and M subway lines at the Second Avenue Station and the 6 subway line at the Spring Street Station, Gorbacz said.
Meridian also arranged $8.5 million in construction financing for a new Days Inn hotel in Brooklyn. Vice President Eli Finkel and Vice President Eli Serebrowski secured a 24-month loan from a savings bank that included a floating rate in the mid-5 percent range and full-term interest-only payments.
The hotel on Eastern Parkway in Crown Heights, Brooklyn will stand five stories with 91 guest rooms. Nearby demand drivers include Prospect Park, the Brooklyn Botanic Gardens and the Brooklyn Museum.
Serebrowski said the firm recently closed several similar transactions for the same developer in Manhattan, the Bronx and Brooklyn even though lenders are scaling back on ground-up construction lending, especially for hotel developments.