Pembrook Capital Management has closed USD27m of new financing for apartment assets in New York City.
Comprised of two mezzanine loans and a bridge loan, Pembrook's financing facilitated three different projects with total capitalisation of approximately USD135m.
Pembrook works with real estate developers and investors to deliver financing for new construction, acquisition, and repositioning, focusing on primary and secondary markets with high barriers to entry. Since inception, Pembrook has originated or participated in over 50 investments totalling in excess of USD500m, involving properties with a total capitalisation over USD1.5bn.
"The real estate financing market continues to evolve in the wake of the last downturn," says Stuart J. Boesky, Pembrook's president and chief executive officer. "Debt financing in particular has become more challenging for sponsors, even those pursuing well-located projects in the strongest markets. Given that imbalance, we see the opportunity to help get deals done by providing an array of financing alternatives. Our recent bridge and mezzanine financing transactions in New York exemplify our approach."
148 Duane Street, New York, NY – USD15.5m bridge loan
Pembrook provided a USD15.5m bridge loan for the acquisition, renovation, and repositioning of a 15,900-square-foot, five-story apartment building with ground-floor retail located in the Tribeca neighbourhood of Manhattan. A loft-style building built in 1930, 148 Duane Street is currently undergoing conversion to condominiums, and will be renovated accordingly to provide condo-quality common areas and amenities. Tribeca is New York's wealthiest neighbourhood, and condominium prices have been rising steadily.
62-74 Avenue B, New York, NY – USD3.5m mezzanine funding
Pembrook provided USD3.5m of additional funding to its previous USD9.0m mezzanine loan for this residential conversion project, bringing Pembrook's total investment to USD12.5m. The sponsor is redeveloping the property as an 81-unit luxury rental. The additional funding will be used to enhance the building's amenity package and retail space and position it to compete at the top level of the East Village rental market.
Multifamily Portfolio, Pelham Parkway, Bronx, NY – USD8.0m mezzanine loan
Pembrook provided an USD8.0m mezzanine loan for the acquisition of a portfolio of five rent stabilized elevator apartment buildings in the Pelham Parkway neighbourhood of the Bronx. Comprised of 555 residential units and 18 retail units, the properties are located on Barnes Avenue and Wallace Avenue, between the Bronx River and Hutchinson River Parkways. The mezzanine financing enables the sponsor to free up equity for further investments.