TD Bank Provides $24M Construction Loan on Bronx Office Building [Updated]
The project will serve as the new flagship facility for non-profit human and social services Samaritan Daytop Village
By Mack Burke November 7, 2019 11:33 amreprints
Manatus Development Group has nabbed $24 million from TD Bank to finance construction of a multi-use office building in the Bronx that will be the new flagship location of human and social services nonprofit Samaritan Daytop Village, Commercial Observer has learned.
The two-year loan includes a six-month extension option and carries a rate of 4.5 percent — 2.75 percent over 30-day Libor, sources said — and a 70 percent loan-to-cost.
Max Ralby of HKS Real Estate Advisors negotiated the debt on behalf of Manatus, which specializes in affordable housing and building projects for nonprofit organizations. Samaritan Daytop Village is a nonprofit that provides services such as substance abuse and mental health treatments and counseling.
“The highly experienced sponsorship, prime location within the Bronx, and strength of Samaritan made for a very competitive marketing process with interest from national and local banks, debt funds [and] not-for-profit lenders, [among others],” Ralby told CO in a statement. “The brand new, state-of-the-art facility will become the centralized location to meet the demand for Samaritan’s treatment to its patients and their administrative needs.”
The six-story development and community center will become Samaritan’s primary opioid treatment center, comprising 84,000 square feet, according to Manatus’ website and information from Samaritan. Around 64,000 square feet will be used exclusively by Samaritan; 12,000 will be for a parking garage; and 3,000 will be flexible space that’s currently not designated for a specific use, according to Samaritan.
The ground-up project — at 362 East 148th Street in the Bronx’s Mott Haven area — was designed by New York-based architect GF55 Partners. The property will include a small intake area to process patients and clients and will feature space used for support services that the organization provides, including primary and dental care as well as individual and group counseling and therapy. There will be a groundbreaking next week, according to Ralby, and a temporary certificate of occupancy (TCO) is expected by the first quarter of 2021.
“Lenders really understood the story and history of Samaritan and the impact they have had since inception in the 1960’s and had full confidence that the sponsor to deliver an amazing space,” Ralby said.
A representative for TD Bank did not immediately respond to an inquiry. Manatus could not immediately be reached.
This story was updated to include recently revised changes to the layout of potential uses of the planned asset as well as an updated TCO timeline.