BRT lends help to the nation.
The company recently closed a $22.25 million first mortgage loan for the acquisition of a multifamily complex in Peru, Indiana.
The property, Estates at Eagle's Pointe, consists of 1,123 one-family and attached two-family homes and is a private redevelopment of the former military housing associated with Grissom Air Force Base. The loan has a one-year term with no prepayment penalties.
Grissom AFB was reclassified from an active Strategic Air command base to a reserve air-refueling base in 1994. Redevelopment of the housing began in 1997 after the Grissom Redevelopment Authority received title to the excess AFB acreage and improvements in 1996.
While BRT's normal lending practice is not to make loans on one- and two-family homes, according to Jeffrey Gould, president/CEO of BRT Realty Trust, the firm viewed Estates at Eagle's Pointe as a unique property.
With homes clustered and sharing common recreation areas and homeowners paying association dues, the property is more similar to condominium developments than single-family housing. Thus, BRT analyzed the property as it would a rental with good opportunity to sell individual units.
BRT Realty also closed a $11.95 million first mortgage loan for the refinance of 15 unsold, luxury hotel condominum units located in Ft. Lauderdale, Fla. BRT was able to close the loan in a very short time frame. The loan has a one-year term with no prepayment penalties. The luxury high-rise hotel is a newly constructed condominium located directly across from the Atlantic Ocean. The building features a 7,000 s/f full service spa, restaurant/bar and newsstand, as well as full service hotel amenities, including 24-hour room service, concierge and valet parking. There are a total of 124 luxury units in the property, of which BRT refinanced 15.
In addition, BRT closed a $27.5 million first mortgage loan for the acquisition of a l,135-unit multifamily property located in Southfield, Mich. The loan, which has a one-year term with no prepayment penalties, includes a repair and interest reserve of $7.6 million for the property, which is 70% occupied.
The borrower is a repeat client of BRT. According to Gould, the borrower has a proven track record for turning around properties BRT has financed, which also contributed to the quick time frame for the closing.
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|Title Annotation:||BRT Realty Trust|
|Publication:||Real Estate Weekly|
|Date:||May 18, 2005|
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