ABS Altman Warwick, a capital market advisory firm and division of ABS Partners Real Estate, announced the closing of a $51 million loan secured by a 360,000 s/f grocery-anchored power center on Richmond Avenue in Staten Island.
“Despite the current challenging lending environment for retail properties, we were pleased to have exceeded the borrower’s expectations with regard to rate, term and duration of the interest-only loan.” said Robert Altman, co-managing partner of ABS Altman Warwick.
The 15-year, full-term, interest-only loan carried a rate of 4.02 percent which equated to a spread of 110 basis points over the 15-year treasury yield.
“The refinancing provided the borrower with significant additional capital for future capital expenditures and corporate growth while also significantly lowering their debt service,” continued Altman.
“Further, the unusually flat yield curve provided an opportunity for us to extend the borrower’s interest rate protection by providing a term of 15 years with a negligible premium to the 10-year rate.”
Altman originated the loan and placed it with a major life insurance company.