Massey Knakal Capital Services is pleased to announce the closing of a $6.23 million construction loan collateralized by a 12-story mixed-use property in Manhattan’s Chelsea neighborhood. The loan featured an interest rate of 6.0% and represents 100% of the development budget.
“This site was owned by a local family for almost two decades. Slated for development in 2008 as a hotel, the recession forced the sponsor to rethink the site’s highest and best use. With the pickup in rental demand and an easing in the financing markets, the owner decided a high-end rental property featuring floor-through units was the best vision. The financing structure was creative in that the lender gave the sponsor credit for the current value of the land, even though the basis in the property was negligible,” said Director Morris Betesh, who exclusively handled this transaction.
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Neighborhoods: Chelsea