Meridian Capital Group, LLC, a national commercial real estate finance and advisory firm, negotiated $40 million in acquisition financing on behalf of Madison Capital in joint venture with an institutional owner for five retail properties fully occupied by Citibank branches located in Manhattan, Queens, Brooklyn and Bronx, NY.
The 10-year balance sheet loan features full-term interest only payments and was provided by a regional bank. Meridian executive vice president Aaron Birnbaum and vice president, Tal Savariego, who are based in the company’s New York City headquarters, negotiated this transaction.
The 44,245 s/f retail portfolio features five assets marketed for sale by AEGON that are occupied by Citibank under long-term leases. Additionally, the portfolio includes air rights and the below market leases provide for future upside potential. The properties are located along prominent retail corridors including Madison Avenue and East 86th Street in New York, NY and Montague Street in Brooklyn, NY.
“Meridian arranged a competitively priced 10-year balance sheet loan that provides the borrower with a favorable leveraged return and flexibility to realize the portfolio’s value-added potential through dispositions and other activities,” said Savariego.
Madison Capital, in a joint venture with an institutional owner, acquired the portfolio from FGP West Street for $80.55 million.
Newmark Grubb Knight Frank represented the seller in the transaction. Kenneth Zakin, NGKF’s senior managing director said at the time, “The market has seen heightened demand for well-located, credit-backed retail locations.”