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Bronx owner bags $186M green loan to fund portfolio energy improvements

Black Bear Capital Partners (BBCP) has arranged $186.4 million in permanent financing on behalf of Finkelstein Timberger East Real Estate (FTERE) for the refinance of sixteen multi-family properties in the Bronx, NY. 

The $186.4 million loan on behalf of FTERE, provided by Fannie Mae through PGIM Real Estate’s agency lending program, featured an averaged fixed rate of 2.98% for 12 years with partial interest-only payments followed by thirty-year amortization schedules.  

The sixteen multi-family properties, which include 1,126 total units, are located at: 3940 Carpenter Avenue; 211 Bedford Park Blvd; 2885 Briggs Avenue; 2908-10 Valentine Avenue; 2935 Holland Avenue; 116 Henwood Place; 1056 Sherman Avenue; 1495 Morris Avenue; 2100-2120 Wallace Avenue; 2544 Valentine Avenue; 2765 Kingsbridge Terrace; 1791 Grand Concourse; 2294-2300 University Avenue; 2230-38 Grand Concourse; 1000 Anderson Avenue; and 2701 Webb Avenue. 

Bryan Manz, Emil DePasquale, Phil Bowman, and Jack Cohen of BBCP arranged the financing package.  

“BBCP was able to leverage the stellar reputation of the sponsor, along with the quality and performance of these well-run assets, to achieve a highly favorable and flexible structure consistent with borrower’s individualized business plan,” Manz said. “Our team was able to add substantial value by using our experience as an originator of Fannie Mae loans and deep understanding of the agency lending process and various programs.” 

3940 Carpenter Ave.

The loan, secured through Fannie Mae’s Green Rewards program, marks the Agency’s first large solar portfolio in New York City that will be outfitted with a new Photovoltaic (PV) System, state-of-the-art LG Solar Panels, and Enphase Inverters across the portfolio. The program, which rewards property owners that commit to reducing their properties’ annual energy and/or water usage by at least 30 percent, offers lower pricing, additional loan proceeds, and a free Energy and Water Audit Report to finance smarter, greener property improvements.  

FTERE invested more than $30 million back into the portfolio, which included $25 million in capital improvements and $5 million in solar installations to create prime workforce housing. 

“Our team worked to secure the right financing terms and bring this transaction to a smooth and efficient closing for our long term best-on-class client,” Manz said. “We are thrilled that our team was able to exceed our client’s expectations and further demonstrate that BBCP is committed to closing transactions and providing a superb client experience.” 

BBCP, which services transactions across all property types, closed numerous complex refinance packages in excess of $1.2 billion year-to-date, with another $300 million in the pipeline. BBCP recently expanded its national platform by opening two new offices, one each in Chicago and New Jersey, with continued plans to make several additional new hires at the senior level in the coming months.  

FTERE is a real estate owner/management company that manages residential apartment buildings located throughout various parts of Bronx County, N.Y., with more than 3,500 units in its portfolio. 

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