Suffolk County National Bank originated an $18.5 million mortgage to refinance two contiguous mixed-use buildings in East Harlem—marking the Long Island-based bank’s largest commercial loan since its inception in 1890—Commercial Observer has learned.
The five-year mortgage carries a fixed interest rate of 3.125 percent and a five-year extension option, according to two people involved in the deal. The debt replaces financing provided by New York Community Bank in September 2012.
Meridian Capital Group Vice President Isaac Filler negotiated the loan on behalf of Shawn Vahdat and Saba Vahdat of New York-based K & V Realty Corp. and 2109 First Avenue Realty Corp.
“We are grateful to Meridian for their commitment to fueling our growth and enabling us to build upon our presence in the New York real estate market,” Saba Vahdat said in prepared remarks provided to CO.
The two mixed-use properties, located at 2105 and 2109 First Avenue, total 66 units and 7,500 square feet of retail space.
“This transaction is a strong example of this dynamic; where Suffolk County National Bank made their largest commercial loan to date, based on their confidence in the sponsors’ experience and long-term commitment to the Harlem marketplace,” Mr. Filler said.
Representatives for Suffolk County National Bank were not immediately available for comment.