Dealmaker: Meridian Capital Group Arranges $183M for Office, Hotel, Condo
Meridian Capital Group, New York, arranged more than $183 million in financing for properties in Texas, Illinois and New York.
Meridian arranged $23.25 million in financing for the Cedar Ridge Office Park in Southlake, Texas, on behalf of TS Partners. The 10-year commercial mortgage-backed securities loan was negotiated by Meridian Managing Directors, Allan Lieberman and Steven Adler, and Vice President, Simcha Schick, based in the company’s New York City headquarters.
Located at 850 and 950 East State Highway in Southlake, the two-story office buildings span 129,000 square feet and include 12 units. Built in 2005 and 2007, the properties feature tilt-wall construction with exterior stone, metal canopy roofs and high-end finishes. It has 416 surface-level parking spaces in addition to 122 indoor, lower-level spaces. TS Partners has maintained close to full occupancy at the properties through its ownership period.
850 East State Highway was occupied by Keller Williams from the building’s construction until 2017, when the company moved to a larger space. Coldwell Banker subsequently signed a lease on the property at $32.50 per square foot, and there is significant leasing activity from viable prospects for the remaining space, which is expected to reach full occupancy within the next several months.
In Chicago, Meridian arranged $72 million in acquisition financing for the condo deconversion of Kennelly Square into multifamily rental units, on behalf of Strategic Properties of North America.
The 24-month loan features a floating rate and two 12-month extension options.
Managing Director, Shaya Ackerman, and Senior Vice President, Shaya Sonnenschein, who are both based in the company’s New York City headquarters, negotiated the financing for this transaction.
The transaction marked the fourth condominium deconversion transaction for both SPNA and The Ackerman Team in the past 24 months, with almost half a billion in loan proceeds received from these transactions. “We see a lot of upside in these transactions,” said SPNA Principal Saul Kuperwasser.
Located at 1749 North Wells Street, Kennelly Square is a boutique residential condominium community consisting of 268 studio to two-bedroom units spread across two buildings, the 24-story Tower building and the nine-story Warehouse building, which are connected via internal hallways and are serviced by the same lobby and elevators.
In New York, Meridian arranged $88 million in financing for a Marriott branded hotel development site in the Hudson Yards neighborhood on behalf of Marx Development Group.
The 24-month loan, provided by Mack Real Estate Credit Strategies, was negotiated by Meridian Managing Director Shaya Ackerman, and Senior Vice President Shaya Sonnenschein. The loan serves to recapitalize the project, and will cover final pre-development costs for the hotel. EB-5 funds totaling $66 million are already in the process of being raised through the sponsor’s regional center, Manhattan Regional Center, for the vertical construction of the project.
Located at 450 Eleventh Avenue on the corner of West 37th Street in Hudson Yards, the hotel will span 235,000 square feet in 42 stories and contain 441 rooms and 3,000 square feet of retail when completed. The property will also feature a business center, lounge, restaurant, banquet rooms and outdoor meeting space. The site is located directly across from the Jacob K. Javits Convention.
Additionally, the hotel is part of the Hudson Yards Project, which is planned to include more than 18 million square feet of commercial and residential space, including office towers, shopping and restaurants. Construction on 15 Hudson Yards and 55 Hudson Yards, a condo and an office building, respectively, is scheduled to complete construction by the end of the year, while 50 Hudson Yards, also an office building, will be completed in 2022. Construction of the hotel is expected to conclude in late 2019.
