Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Tuesday, 12 May 2020

New York Community Bank Lends $329Mln Against Brooklyn, N.Y., Apartment Complex

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Commercial Real Estate Direct Staff Report

New York Community Bank has provided $329 million of financing against Flatbush Gardens, a 59-building apartment complex with 2,496 units in Brooklyn, N.Y.

The loan, which closed on May 8, has a 12-year term. It pays a coupon of 3.125 percent and requires only interest payments for the first seven years. After that, it has a coupon tied to the prime rate plus 275 basis points and amortizes on a 30-year schedule.

The loan allowed the property's owner, Clipper Realty Inc. of New York, to retire $246 million of financing that New York Community had provided two years ago. The old loan didn't mature until March 2028 and was subject to a 2 percent prepayment penalty. It paid a coupon of 3.5 percent, which would have converted to a floating rate pegged to the Prime rate plus 275 bps in 2023.

Clipper Realty, which has owned the property since September 2005, plans on holding the $78 million of excess proceeds from the refinancing on its balance sheet, adding to the $53.9 million of cash and restricted cash it carried as of the end of March. It could tap that liquidity to pursue potential investment opportunities that might arise.

The refinancing was driven by the company's ability to reduce its debt-service obligation and extend the maturity of its indebtedness.

Flatbush Gardens, which was constructed in 1950, was 97.2 percent leased at the end of March. Michael Frenz, Clipper Realty's chief financial officer, told analysts on a conference call yesterday that the company had collected about 89 percent of the rent it was owed at the property last month.

Clipper Realty noted that an appraiser commissioned by New York Community recently valued Flatbush Gardens at $475 million, or $190,305/unit.

The property has a mix of one-, two- and three-bedroom units as well as four parking garages with a total of 240 spaces. It sits along Foster Avenue between Nostrand and Brooklyn avenues in the borough's East Flatbush neighborhood.

Flatbush Gardens consists of:

- 3101 Foster Ave., with 168 units;

- the 144-unit 1405 Brooklyn Ave.;

- 1402 Brooklyn Ave., with 420 units;

- the 504-unit 1368 New York Ave.;

- 3505 Foster Ave., with 504 units;

- the 336-unit 3202-24 Foster Ave.; and

- 1401 New York Ave., with 420 units.

Comments? E-mail Tim Casey or call him at (267) 397-3347.



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Additional Info

  • Syndicate to Realpoint: No
  • Cities: New York City
  • States: New York
  • Sector: Multifamily
  • Subject: Mortgages/Financing (MOR)
  • Valuation: More than $150 million
  • Private: No
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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