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Massey Knakal Capital Services is pleased to announce the closing of a $14.5 million ground-up construction loan collateralized by a 12-unit luxury multifamily property in Manhattan’s Soho neighborhood. 

“The developers for this property previously owned and managed a large portfolio of multifamily properties in Little Italy and SoHo, but had not done any recent construction projects in New York City,” said Bruce Whipple, who exclusively handled this transaction. “The loan request went out to approximately 60 lenders and was difficult to place for several reasons.   The foremost concern was that the construction loan market was just beginning to recover from the credit crisis last summer. Very few lenders wanted to take on the risk of ground-up construction and had concerns about the high rents projected for each unit (in excess of $10,000 per month). The units will have balconies, terraces, direct elevator access, and high-end finishes and appliances.  There will be a pre-school on the lowest three levels.”  The lender that closed the loan was a fund that felt comfortable with the location, the strength of the neighborhood and New York City land values,” added Whipple.

Massey Knakal was able to leverage synergies with its investment sales team by securing accurate and up-to-date comparable sales data for the land, community space rents and residential rents in SoHo.

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Neighborhoods: SoHo