Meridian Capital Arranges $33M in Iowa, New York
Meridian Capital Group, New York, closed $32.8 million for two assets, an Iowa office and a New York City mixed-use property.
Brian Flax, managing director with Meridian, and Associate Corey Schwartz negotiated $10.8 million in commercial mortgage-backed securities financing on behalf of Financial District Properties for Mississippi Plaza, a Davenport, Iowa office property.
The 10-year loan from Silverpeak Real Estate Finance, New York, features a fixed rate of 4.77 percent and interest-only payments for the first year.
“This transaction presented a significant challenge as the two largest tenants, who occupy a combined 70 percent of the building, have leases with the same expiration date which roll during the term of the loan,” Schwartz said.
Meridian’s team had to work out a structure that allowed the sponsor to maintain ongoing cash flow while building up a reserve for tenant improvements and leasing commissions.
“Another highlight of this deal was the fact that we closed the loan with Silverpeak in a very short 19-day timeframe, allowing our client to immediately put the proceeds to work in another project,” Flax said.
Meridian also negotiated $22 million to refinance a mixed-use property on Second Avenue on Manhattan’s Upper East Side. The property totals 31 apartments and 10,000 square feet of retail space. Notable tenants include Lenwich by Lenny’s sandwiches and Brother Jimmy’s Barbeque.
The three-year loan from M&T Bank floats at 205 basis points over LIBOR and includes full-term interest-only payments and two one-year extension options. Meridian Managing Director Carol Shelby and Vice President Dani Sabesan negotiated the transaction.