Capital One has provided a $110 million, floating-rate, interest-only loan to refinance Eastchester Heights Apartments, consisting of 118 four-to-six story apartment buildings in the Bronx.
The loan has an initial term of 30 months, with an option to extend in six month increments for an additional 30 months.
The property is owned by entities controlled by Taconic Investment Partners and Clarion Partners.
“We are always pleased to have the opportunity to build on existing relationships, and that was certainly the case with Taconic and Clarion,” said Paul Kesicki, a senior vice president for Capital One’s Commercial Real Estate Group.
“Since acquiring Eastchester Heights, these firms have done a tremendous job creating additional value through property improvements.”
Evan Pariser, senior managing director at Holliday Fenoglio Fowler (HFF) led a team that arranged the financing on behalf of the borrower.
After acquiring the 1,416-unit complex in 2007, Taconic renovated nearly half of the apartments, completed installation of apartment electric meters, converted boilers to natural gas, replaced stairwells in many common hallways, among other improvements.
More recently, Taconic concluded a two-year, 200,000 s/f roof and parapet replacement project at the property.
“Capital One worked hard to capture this opportunity,” said Charles Bendit, co-chief executive officer of Taconic. “They understood our priorities and structured the loan accordingly through their streamlined process.”
Since 1997, Taconi has acquired, developed, redeveloped, and repositioned over 12 million square feet of office, mixed-use, and retail space and more than 3,000 units of multifamily housing in New York City.
Clarion Partners invests in office, retail, industrial, multifamily, and hotel properties using a range of real estate strategies.
It currently has $40.3 billion in total assets under management and more than 200 domestic and international institutional investors.