Castellan Capital ended 2017 with a notable $33 million acquisition loan on the last business day of the year. The loan is for a mixed-use property situated in a prime area between 5th Avenue and Avenue of the Americas in Midtown Manhattan. The building contains 26 rental apartments and three commercial units covering an area of 39,600 square feet. The loan term is 24 months and borrower intends to convert the units to condominiums and repay Castellan’s loan with a construction loan.
The building was appraised for $51 million, and the loan to value is 64.7%. Security consists of a first position mortgage lien, a pledge of reserves/escrows, and a pledge of ownership interests. Also, the borrower is a substantial amount of equity in the acquisition before Castellan’s loan. Castellan is pleased with the loan’s risk/return profile for a property located in one of Manhattan’s most desirable neighborhoods.
Castellan Capital is a division of Castellan Real Estate Partners, and is a privately held direct portfolio lender that specializes in situations where conventional financing is not available. Castellan’s team of seasoned professionals makes fast decisions and closes quickly. With discretionary capital and no outside investment committee, Castellan has the flexibility to structure transactions to meet each borrower’s unique requirements.