Limekiln Real Estate Lends $62M to Refinance Detroit Mixed-Use Property

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Detroit-based developer The Platform has landed a $62 million debt package to refinance a mixed-use property in that city, Commercial Observer has learned.

Limekiln Real Estate Investment Management supplied the financing, which included a non-recourse, 88 percent bridge loan, featuring a floating rate of 3.45 percent over a 30-day LIBOR (London Interbank Offered Rate) rate and full-term, interest-only payments, sources told CO. Meridian Capital Group Managing Director Noam Kaminetzky and Vice President Ralph Gelley negotiated the transaction out of the company’s Boca Raton, Fla., office.

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Located at 2911 West Grand Boulevard, one mile north of Downtown Detroit, the newly constructed 207,000-square-foot property includes a 231-unit multifamily rental community, 17,500 square feet of retail space and 330 parking spaces. Amenities for the apartment portion of the development include a fitness center, business center and courtyard.

“The lease-up on this newly constructed building was delayed due to COVID, and the borrower needed more time to stabilize the asset before seeking permanent debt,” Kaminetzky said in a statement. “The lender was able to recapitalize the construction loan to allow the existing debt and private partnership loans to be paid off, cash-out a portion of borrower’s equity, and provide future funding based on achieving specific milestones.”

Kaminetzky added that the deal involved “complexities” to navigate, including structuring it around tax abatements and a tax increment financing.

Officials for Limekiln and The Platform did not immediately respond for requests for comment on the transaction.