Meridian Arranges $25M Loan From Mesa West for UES Buy


Debt fund Mesa West Capital has provided $25 million in financing to Montreal-based Crest Realities for the acquisition of a 38-unit prewar residential building in Carnegie Hill on the Upper East Side, Commercial Observer has learned.

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Mesa West’s Russell Frahm and Pamir Aniz originated the debt. The lender will hold the short-term loan on its balance sheet, and the financing carries a 65 percent loan-to-value ratio. Crest purchased the building from longtime owner Lazar Gozivoda for $39 million, according to The Real Deal.

“[The borrower] owns a bunch of multifamily properties in the states, and has invested in a bunch of multifamily in New York City and its submarkets, specifically,” Frahm told CO. “It’s a product type that we’re very comfortable with.”

Meridian Capital Group negotiated the floating-rate mortgage for the nine-story, 42,857-square-foot building at 118 East 93rd Street between Lexington and Park Avenues. It was built in 1926.

“The loan closed under a tight time-of-essence deadline and provided for the initial acquisition financing as well as a future funding component for capital expenditures to be undertaken at the property,” said Ronnie Levine of Meridian, who worked on the financing with Jeff Berkes.

In May, Meridian arranged a similar deal with Mesa West for the acquisition of another multifamily building in Manhattan. The debt fund provided Springhouse Partners with $37 million for 51-55 Irving Place, a seven-story, 56-unit apartment property near Union Square.

“We’ve done a lot of these deals recently, so we had a good sense of the rents and it’s a good asset, a good location and a good leverage point,” Frahm said.

A representative for Crest did not return a request for comment.