AFC arranges debt and equity deal for Bronx storage facility.AFC (1) (Application Foundation Classes) A class library from Microsoft that provides an application framework and graphics, graphical user interface (GUI) and multimedia routines for Java programmers. Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Capital, a boutique Boutique A small investment firm specializing in offering specific, but limited services to a select number of individuals. Notes: These investment firms are the alternatives to large financial supermarkets. They provide a highly personalized environment for investing. real estate investment bank headquartered in Manhattan, arranged senior acquisition debt and joint venture equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. for two self storage properties located at 1037 Zerega Avenue and 4268 Third Avenue in the Bronx. AFC Realty secured a total of $34 million in financing for the two assets through a Wall Street investment bank and a NY-based pension fund advisor. Paul Fried, principal of AFC Realty, made the announcement. A specialist in arranging financing for self-storage facilities around the country, AFC Realty, procured debt and equity providers that would make available the capital necessary for the owner to aggressively acquire sites and grow its storage business. AFC Realty secured fixed-rate financing consisting of 80% loan-to-cost senior debt for the two properties. In addition, the financing provided reserves and working capital for the "lease up" of the larger of the two assets, Zerega Self Storage, a newly-built, 100,000-square-foot facility located in the intersection intersection /in·ter·sec·tion/ (-sek´shun) a site at which one structure crosses another. intersection a site at which one structure crosses another. of the Cross-Bronx and Bruckner Expressways. The second property, situated on Third Avenue in the Bronx, was acquired with the same debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay and joint venture equity partnership. "Our main challenge was securing aggressive financing for the newly-constructed Zerega Self Storage," said Fried. "The asset presented some lease-up risks, but its central location, within a high traffic corridor, and institutional-quality construction provided the foundation for attracting institutional capital." In addition to Zerega Self Storage, the AFC Realty financing package included a $6.5 million acquisition loan for the smaller facility located at 4268 Third Avenue in the Bronx. |
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