RM Capital Management LLC closed a $12.85 million financing of four luxury, single family townhomes at 321-325 Pacific Street in Boerum Hill, Brooklyn.
The bridge loan, provided by Popular Bank, replaced the high leverage construction capital structure with lower cost bridge financing.
“The LTV is much lower now than it was at the initial loan closing 24 months ago due to the fact that construction is almost complete and the market for townhomes in Brooklyn has appreciated measurably,” said RM Capital co-managing partner Marc Sznajderman, who handled the transaction with co-managing partner Romano Tio.
RM Capital represented the borrower, Brooklyn based developer Phil Mendlow, who also serves as a Senior Vice President of development for Bluerock Real Estate.
“Construction is virtually complete on the project and the developer will now be able to reduce his carrying costs while the townhouses are properly marketed” commented Tio. “The market for townhouses in Brooklyn is extremely strong.ˮ
RM Capital also arranged the original non-recourse construction financing for the project, which closed in 2014. That loan was provided by Emerald Creek Capital and provided approximately 90% of the total project costs.