Meridian Capital Group arranged $65.2 million in acquisition financing for the purchase of Hawthorne Court, a multifamily property in Central Islip, NY on behalf of Spruce Capital Partners and Post Road Properties.
The seven-year Freddie Mac loan, provided by Capital One Multifamily Finance, features a fixed rate of 3.70 percent and three-years of interest-only payments.
Meridian senior managing director Abe Hirsch and managing director Zev Karpel, who are both based in the company’s New York City headquarters, negotiated the loan.
According to Hirsch, by demonstrating the upside value-add potential of the property, the firm was able to achieve 81 percent loan-to-cost financing.
“Hawthorne Court has a track record of high occupancy and strong revenue growth,” explained Hirsch. “The opportunity to purchase institutionally owned and managed assets in Long Island is rare and Capital One did an excellent job of recognizing the value here and executing for the sponsor.”
The 20 two-story buildings total 434 units and are located at 111-211 Hawthorne Avenue in Central Islip.
The buildings were constructed in 1967 and in 1997 26 additional units were built. Amenities include 682 parking spaces and a swimming pool. Hawthorne Court is less than one mile away from the Central Islip Long Island Rail Road station, which is 74 minutes from Penn Station.
“We worked closely with both Meridian and Freddie Mac to obtain the best result for the sponsor. These close working relationships always prove beneficial,” said Grace Huebscher, president of Capital One Multifamily Finance.
“We’re happy with the result and look forward to collaborating in the future.”