Annaly Capital Management has provided $46.5 million in financing to Sugar Hill Capital Partners to fund its purchase of a 125-unit multifamily portfolio in New York City, the borrower confirmed to Commercial Observer.
The New York-based real estate firm scooped up the five contiguous properties—which are located at 471-476 Central Park West between West 107th and West 108th Streets—for $65 million in an off-market transaction, as The Real Deal first reported. Local real estate investors Benjamin Hadar and Leonard Solomon of Upwest Co. have owned the properties since 1982, according to city records.
Meridian Capital Group Senior Managing Director Ronnie Levine and Vice President Shamir Seidman arranged the three-year loan, which carries a Libor-based floating rate and interest-only payments for the full term.
“These buildings were a tremendous opportunity for our clients to acquire prime Central Park West rental properties,” Mr. Seidman said. “Despite the assets having a number of vacancies and some deferred maintenance, Meridian was able to make a market for the loan and negotiate proceeds in excess of 70 percent loan-to-cost.”
A representative for Annaly did not immediately respond to inquiries for comment.