Beverly Hills-based BridgeCore Capital has funded a $16.5 million
loan on two contiguous mixed-use buildings in Greenwich Village.
Davean Holdings, an investment firm founded in 2017 by David Lloyd and Sean Lefkovits, acquired the two seven-story properties for $22.25 million last month.
James Nelson and his team at Avison Young brokered the sale of 103-105 MacDougal Street on behalf of seller, Wilma Gelfand.
The borrower required a non-recourse bridge loan to purchase
the buildings. The apartments are 53 percent vacant, and the retail space is
100 percentvacant.
BridgeCore’s 24-month term, including two six-month
extension options, is providing the borrower the necessary time to make
renovations, including a re-balancing between market-rate and rent-stabilized units,
and to position the property for an exit with conventional financing, once
stabilized.
“BridgeCore’s competitively structured loan terms allowed
our client to quickly execute on the purchase of a transitional asset at a time
when conventional financing has not been readily available because of the
COVID-19 economic environment,” Elliot Shirwo, BridgeCore founder and
principal, said.
Loan terms include three months of prepaid interest; an interest rate of 7.65% for the first 12 months and a floating rate at Prime + 4.40%, with a floor of 7.65%, for the second 12 months; and collection of monthly escrows from the borrower for interest, taxes and insurance.
