Clipper Realty Snags $70M for Acquisition of East Harlem Rental
Cathy Cunningham June 29, 2016, 11:28 a.m.
Capital One has provided $70 million in acquisition financing for Clipper Realty’s purchase of The Aspen in East Harlem, Commercial Observer can first report.
The debt was arranged by Meridian Capital Group. Transaction parties declined to name the borrower, but according to an article in the The Real Deal, Clipper Realty, a REIT and affiliate of David Bistricer‘s Clipper Equity, was in contract to buy the East Harlem rental building for approximately $103 million in January from 100 Street Tri Venture LLC, a joint venture between L&M Development Partners, BFC Partners and River Equities. Ariel Property Advisors represented the seller in the transaction, with Shimon Shkury, Victor Sozio, and Michael A. Tortorici leading the negotiations.
The 12-year Fannie Mae loan features a fixed rate of 3.68 percent and one year of interest-only payments.
“Understanding the client’s long-term plan for the asset, we approached banks, life insurance companies and agency lenders, ultimately pursuing a Fannie Mae loan with Capital One Multifamily Finance in order to achieve the 12-year term and required proceeds,” said Shaya Ackerman of Meridian in prepared remarks. Ackerman negotiated the deal along with colleague Shaya Sonnenschein.
The seven-story multifamily property is located at 1955 First Avenue and spans the entire block along First Avenue from East 100th to East 101st Streets. Designed by Costas Kondylis and Partners and Magnusson Architecture and Planning, the Aspen has 232 residential units and four commercial spaces. Building features include a clubroom with a billiards table, a fitness center and on-site 109-space parking garage.
“This deal was incredibly complex and required significant ‘out of the box’ thinking to get to a close and meet the borrower’s unique needs,” said Grace Huebscher, the president of Capital One Multifamily Finance. “It was truly a great team effort that required us to leverage our relationship with Meridian.”
Officials at Clipper Realty declined to comment.