New York Community Bank provided a $27.4 million loan to Goldfarb Properties on its recently purchased rental building at 1770 Grand Concourse in the Bronx, sources confirmed to Mortgage Observer.
The 12-year mortgage carries an interest rate of 3.625 percent, according to NYCB. Among the loan’s terms is a 2 percent interest rate hike if the borrower fails to submit required financial information, including income and expense statements, twice a year, according to the loan document. A spokesperson for the bank said that provision is standard among all of NYCB’s commercial real estate deals.
Goldfarb Properties acquired the mixed-use multifamily and office building from the Bronx-Lebanon Hospital Center for $27.8 million in April, city records show. The owners are currently repositioning 1770 Grand Concourse—which one source familiar with the project described as a “shell of a building right now”—and plan to reopen the 13-story property as a more upscale apartment building in the spring of 2015.
The renovated building will contain 171 apartments totaling 134,000 square feet, two elevators and 70 parking spaces. Goldfarb Properties has a management office on site.
The building, which was constructed in 1960 and was last altered in 2003, previously contained 18 office units, some of which housed the Bronx-Lebanon Hospital Center Department of Dentistry, according to property records.
Meridian Capital Group served as an advisor on the transaction. A spokesperson for the mortgage brokerage firm declined to provide additional information about the deal.
Goldfarb Properties did not respond to requests for comment.