Hudson Realty Capital has funded a $5.4 million bridge and construction loan for a partially completed building on Saint Mark’s Avenue in Prospect Heights, The Commercial Observer has learned exclusively, as activity at stalled sites continues to pick up.
Last year, according to data from the New York Building Congress, the number of stalled sites fell by 8 percent, measured in October 2011 and compared to the same period a year previous. Brooklyn, however, remains the leader in stalled sites.
This particular loan will be used by the borrower to purchase the property and complete construction, which had been halted when the New York City Department of Buildings placed a worktop order was placed against the previous developer.
“It was 70 percent complete,” Hudson Realty Capital managing director Spencer Garfield told The Commercial Observer. “We provided financing to acquire and complete it.”
Mr. Garfield added that, though ample capital is available in the market, “properties that have a value-add component—in the form of renovation or construction or lease-up—are not so easily financeable.”
This particular multifamily building consists of 24 units—studios and one bedrooms and is five-stories tall. Amenities include on-site parking, high ceilings and shared rooftop space.
“We will continue to focus on new originations and purchasing senior debt in our own backyard—and nationally—at a time when our product is in such heightened demand,” Mr. Garfield added.
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