Mortgage Beat

Capital One Syndicates $220 M. American Realty Capital Loan

Capital One Bank has completed the syndication of the previously announced $220 million credit facility for American Realty Capital New York Recovery REIT, Inc. (“NYRR”).

American Realty Capital

The syndicated loan will be used primarily to facilitate acquisitions of large, institutional-quality properties in New York City, the bank said.

Capital One Bank acted as the sole lead arranger, sole bookrunner and administrative agent on this transaction. A group of four other banks, US Bank, TD Bank, Key Bank and Peoples, participated in the transaction.

“We are pleased to support NYRR’s growth efforts in the New York metropolitan area,” said Ben Stacks, Greater New York Market Manager, Capital One Bank Commercial Real Estate, in a statement sent to The Commercial Observer. “We look forward to continuing our relationship with the company as it strengthens its regional footprint.”

NYRR currently has a portfolio of 19 properties in the New York metropolitan area, including an office building in Chelsea, a multifamily apartment building in Brooklyn and a retail and garage property in Midtown.

“As the lead arranger for this deal, the Capital One Bank team coordinated the financial solution we needed,” said Michael Happel, NYRR’s Chief Investment Officer, in a statement. “We were impressed with the team’s dedication to developing and completing a tailored financing solution that we believe will help us achieve our goals.”

American Realty Capital, a New York-based real estate investment company, hosts an umbrella of entities that includes a number of public and private offerings, including those in retail, healthcare and other commercial real estate, including a massive REIT.

In July, American Realty Capital Properties, Inc. announced that it would acquire all of the outstanding shares of American Realty Capital Trust IV, Inc. for cash and stock, in a merger agreement valued at $3.1 billion.

The transaction created the second biggest publicly traded REIT, and since going public in 2011, ARCPS’ enterprise value has surged to $10 billion from $250 million.

Capital One Bank’s Commercial Real Estate Group provides financing in markets including New York; New Jersey; Massachusetts; Pennsylvania; Washington, D.C.; Virginia; Maryland; Texas; and Louisiana. The group offers a commercial lending, financing, underwriting, and treasury management for property owners and developers.

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