Ariel Property Advisors’ Capital Services Division enjoyed a banner 2019, capping off the final weeks of the year with a $20 million acquisition loan for a large industrial facility with high-profile tenants in Bedford, Indiana.
Led by Ariel’s Paul McCormick, Senior Vice President of Investment Sales and Capital Services, and Directors Eli Weisblum, Matthew Dzbanek and Matthew Swerdlow, the Division in 2019 arranged financing for a wide variety of properties in New York City and across the country, including industrial, retail, mixed-use, multifamily, and new construction.
In late December, the team arranged a $19.915 million loan for the acquisition of a 384,000-square-foot industrial facility in the tertiary Indiana market. More than a dozen lenders competed,but the winning bid ultimately went to a west coast lender, which is a testament to the breadth of relationships of the Division. The 75% loan-to-value mortgage featured a 10-year fixed-rate term amortized over 30years with no prepayment penalty.
The industrial complex – which is just 10 miles from the third-largest U.S. Naval base in the world – houses SAIC and Raytheon, two of the country’s biggest defense contractors, along with other tenants. The property has the potential for further upside with respect to future outparceling. Prior to closing, the buyer had started the construction of a new 18,000-square-foot building for one of the current tenants.
“We are witnessing an uptick in owners looking to acquire retail, industrial and office assets on a national level, as these properties tend to offer higher going-incap rates,” Weisblum said. “This is a clear indication that lenders have an appetite, with little concern for location, and more focus on the sponsor, the asset itself and tenant makeup.”
“Lenders continue to realize that there is significant opportunity in a secondary or tertiary market,” he added. “We always try to complement acquisitions with creative debt capital, which allows our clients to enhance their cash flows.”
Ariel Property Advisors also closed the following during the final weeks of 2019:
- $6.45 million acquisition loan in the small market of Cape Girardeau, Missouri
Financing was obtained for a 71,640-square-foot, single-tenant, triple-net leased building to Academy Sports.
- $6 million construction loan for a three-parcel assemblage in Queens
The Division secured construction financing for the refinancing and redevelopment of more than 90,000buildable square feet in a mixed-use assemblage nearly 10 minutes from JFK airport.
- $4.828 millioncash-out refinance in Bedford-Stuyvesant, Brooklyn
The team tapped their well-established banking relationships to secure financing for a package of four multifamily buildings in the popular neighborhood of Bedford-Stuyvesant.
More Information is available from the Capital Services Division at 212-544-9500: Paul McCormick, ext. 45, pmccormick@arielpa.com; Eli Weisblum, ext. 41, eweisblum@arielpa.com; Matthew Dzbanek, ext. 48, mdzbanek@arielpa.com; and Matthew Swerdlow, ext. 56, mswerdlow@arielpa.com.
Ariel Property Advisors is a commercial real estate services and advisory company located in New York City. The company covers all major commercial asset types throughout the NY metropolitan area, while maintaining a very sharp focus on multifamily, mixed-use and development properties. Ariel’s Research Division produces a variety of market reports that are referenced throughout the industry.
Stay Connected:
Ariel Property Advisors, http://arielpa.nyc/
Paul McCormick, http://arielpa.nyc/our-team/paul-mccormick
Eli Weisblum, http://arielpa.nyc/our-team/eli-weisblum
Matthew Dzbanek, http://arielpa.nyc/our-team/matthew-dzbanek
Matthew Swerdlow, http://arielpa.nyc/our-team/matthew-swerdlow
