New York – On March 17th 2014, Emerald Creek Capital issued a one-year $5,250,000 commercial bridge loan to a well-known real estate investor for the purchase of a four-story property located on 14th Street between Chelsea and the West Village. These areas are two of the most popular districts in Manhattan.
With improving conditions of the real estate market, there has been a trend of converting buildings into high-end condominiums. The price of a new condominium located nearby the subject property ranges from $1,400,000 to $9,500,000, with average asking price of $2,000 per SF. To take advantage of this lucrative opportunity, the property will be turned into a premium condominium building, encompassing a much greater buildable area of 15,000 SF.
The property covers a total of 8,250 SF and had been used as office space for many years. The property’s value is further enhanced by its close proximity to many public transit options. Seven different subway lines can be accessed within one block of the property, which allows access to all parts of New York City.
The borrower contributed more than $4,000,000 of fresh capital to the transaction. Since the building is currently vacant and generates no income to service the debt, Emerald Creek Capital structured a pre-paid interest reserve to service the loan while the borrower executes his business plan.
This type of loan is generally not available from traditional banks and demonstrates Emerald Creek Capital’s flexibility as an alternative balance sheet lender. Mark Bahiri, a Managing Partner at Emerald Creek Capital, structured the bridge loan.
“What attracted us to the deal was the sponsor’s experience and outstanding location of the asset” said Mr. Bahiri. “We were pleased to provide the short-term acquisition capital until their construction loan comes into place”. Emerald Creek Capital is located in Manhattan and has been providing flexible middle market commercial bridge loans since 2009.