Columbia Pacific Advisors Lends $39M on Soho Apartment Building
The deal marks the first to come out of the firm’s new situational fund targeting COVID-19 affected properties
Seattle-based private equity firm Columbia Pacific Advisors (CPA) has supplied $39.1 million in bridge debt to New York-based real estate investment and development firm P. Zaccaro Co. to help lease-up and stabilize its newly-built apartment and retail property in the Soho neighborhood of Manhattan, Commercial Observer has learned.
The debt investment was made out of CPA’s new “recovery fund,” which targets opportunities to supply debt or equity in support of real estate owners or developers with properties adversely affected by COVID-19.
The three-year loan to P. Zaccaro — a firm led by principals and long-time new York real estate players John Zaccaro and John Zaccaro Jr. — will support lease up efforts for the firm’s new, eight-story residential and retail mixed-use property at 68-70 Spring Street in Soho, according to city property records.
The property spans more than 24,300 square feet — roughly 4,000 of which will be retail — and includes 10 two-bedroom apartments and a couple three-bedroom penthouse residences, according to information from CPA and plans filed with the city. Construction began in April 2017, according to P. Zaccaro’s website.
Columbia Pacific Senior Vice President Eric Jordan said the property is “ideally located near one of the strongest retail corridors in New York City,” said Eric Jordan, Senior Vice President of Real Estate Lending at Columbia Pacific Advisors. “We believe the capital provided will enable the owners to lease up this highly desirable property as market conditions continue to improve.”
CPA built out its new bucket of capital via a private fund raise in order to provide two- to five-year term debt or equity for special situations to resolve issues such as “imbalances between debt and equity” created by overleveraged assets that require an upfront loan, for example, according to information from the company.
“As a fully capitalized lender, we are well positioned to provide real estate owners and developers with the resources and time they need to navigate the current environment, as well as position themselves for success post-COVID,” said Billy Meyer, a managing director of real estate lending at CPA.