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