Ariel Property Advisors’ Capital Services Division starts summer strong, arranges $16.7 million in financing

July 16, 2018 From Ariel Property Advisors
Matthew Dzbanek. Photo courtesy of Ariel Property Advisors
Matthew Dzbanek. Photo courtesy of Ariel Property Advisors
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Ariel Property Advisors’ Capital Services Division recently arranged $16.7 million in financing for 5 transactions located in Manhattan, Brooklyn and Connecticut. The funding was highlighted by a bank construction loan that utilized Affordable New York, a popular developer tax incentive.

Led by Ariel’s Paul McCormick, Senior Vice President of Investment Sales and Capital Services, and Directors, Matt Dzbanek and Matt Swerdlow, the Division arranged financing for 13 properties, which included mixed-use, multifamily, and retail buildings.

“Many of the loans were quite complex, but by leveraging our extensive lending relationships and using our deep understanding of the structure of the deals, we were able to procure the best possible terms for our clients,” Dzbanek said.

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  • $6.5 Million Refinancing Loan in Bedford-Stuyvesant – The team secured financing for this property portfolio, arranging a 5-year, 75% loan-to-value (LTV), non-recourse, cash-out loan with a fixed-rate of 4%.

  • $6 Million in Financing for a Portfolio in Bedford-Stuyvesant, Bushwick and Prospect Lefferts Gardens – The Division arranged funding for a portfolio including the acquisition of a vacant 3-family property with a short-term community facility tenant occupying the basement. The client refinanced the remaining assets, which consists mostly of smaller-sized multifamily and mixed-use properties. The borrower, a foreign national, received a 5-year term, with 30-year amortization and 75% loan-to-value (LTV). The non-recourse, cash-out loans had a fixed-rate of 4.25%, and were not cross-collateralized, giving the client increased flexibility on his exit from the mortgage.

  • Affordable NY Construction Loan in East Flatbush, Brooklyn – A $1.8 million ground-up construction loan for an 8-unit rental building was provided by an out-of-state balance sheet lender. The Division played a pivotal role in educating the lender on the specific details of Affordable New York, which was just ratified 2-months prior to the loan’s submission.

“This was one of the first construction loans underwritten with the lower tax burden derived from Affordable New York’s popular selection of Option C,” Swerdlow said. “In East Flatbush, the borrower is earning a 100% tax emption for 35-years without losing any rent potential because the market rent is equal to the affordable thresholds set by the city.”  

The Division also recently secured financing on the following:  

  • Multifamily Refinance in Stamford, Connecticut – Ariel’s Capital Services team leveraged their relationship with a local Connecticut bank to arrange a $1.4 million cash-out refinance loan on a 7-unit rental property. All tenants were part of the Section 8 voucher program, with the non-recourse loan featuring a flexible prepayment penalty should the borrower decide to sell.

  • Mixed-Use Refinance on the Upper East Side, Manhattan – A $1 million cash-out refinance loan for the 9-unit mixed-use property. The loan featured a highly attractive fixed rate of 3.375% for a 3-year term with 30 years of amortization through a balance sheet lender.


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