Silver Arch Capital Partners has closed an $8 million first mortgage loan secured by two mixed-use properties in New York City, announced Jeffrey Wolfer, president and CEO of the Hackensack, NJ-based private lender.
The financing, obtained by Mooney House LLC and 127 Mott Street LLC, “will enable the borrowers to pay off an existing mortgage, continue the renovation of the properties, and fund reserves and closing costs,” said Wolfer.
“This was originally negotiated as a $4.5 million loan,” said Wolfer, who noted that the properties are currently encumbered by a $6.16 million mortgage.
“It was determined that original amount would not have been sufficient to pay off the encumbrances and provide some funds to continue remodeling the apartments. We were able to increase the loan to $8 million to take care of the liens and make the loan.”
The properties include 18 Bowery/1-7 Pell Street, which has four residential apartments and two ground-level commercial spaces in two buildings, one of which is landmarked.
The property was acquired in 2012 and has undergone $630,000 in capital improvements to date.
The second property, 127 Mott Street, includes 12 residential units and one commercial space in two buildings. Acquired in 2014, it has undergone more than $375,000 in capital improvements. Both properties have more than 6,000 s/f of excess development rights.
“The properties are located in the Chinatown and Little Italy submarkets in lower Manhattan — one of the most densely populated areas in Manhattan,” said Wolfer.
“These are strong retail and residential markets and, in general, the rental market in Manhattan continues to be strong.”
Silver Arch Capital Partners is a nationwide private lender to the commercial real estate market, specializing in bridge loans to owners, investors and developers in need of funding outside the scope of traditional banks and lenders.