Newmark Knight Frank (NKF) is pleased to announce that it has secured a $78-million fixed-rate loan on behalf of BCB Property Management Inc. (BCB), for the refinancing of a six-building multifamily portfolio in Manhattan’s Morningside Heights. The NKF team was led by Dustin Stolly and Jordan Roeschlaub, Vice Chairmen and Co-Heads of Debt & Structured Finance, along with Senior Managing Director Daniel Fromm and Analyst Jason Deck. Signature Bank provided the senior loan and the mezzanine loan was provided by Keysite Capital.
The Properties, located at 111 West 104th Street, 242 West 109th Street, 3143 Broadway, 3147 Broadway, 3149 Broadway, and 500 Cathedral Parkway, which are collectively 100% occupied, are situated proximate to Central Park and Morningside Park. The Portfolio’s location provides unparalleled access to some of the best restaurants, bars, coffee shops, gyms, and grocery stores in the city. Since acquisition in 2014, BCB spent over $10 million in capital improvements for unit renovations, common areas, and building systems upgrades.
“Average asking rents in the submarket are currently at its 10-year high, which have experienced 13% growth since 2010,” said Fromm. “This refinancing allows BCB to repay their existing debt provided by Square Mile Capital and provides the capital necessary to successfully complete the execution of their business plan,” said Stolly.
Morningside Heights, known as the Academic Acropolis, is home to a number of renowned universities. With Columbia’s significant presence and further expansion plans already underway and institutional development from companies like the Savannah Real Estate Fund in recent years, the area is poised for increased capital investment that will ultimately lead to further development throughout the neighborhood.
BCB is a privately-held real estate investment and management firm which utilizes its expertise in multifamily, mixed use, retail and office properties to acquire properties located in Long Island, Brooklyn and the New York metro area. BCB utilizes a value-add strategy to acquire properties in supply-constrained markets at a discount to replacement cost that significantly enhances return potentials. BCB’s deep knowledge of local markets and vertically-integrated capabilities provide a solid platform for success while achieving exceptionally high-yielding investments.
About Newmark Knight Frank
Newmark Knight Frank, operated by Newmark Group, Inc. (NASDAQ: NMRK), is one of the world's leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF's 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com. Newmark Group is a publicly traded subsidiary of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets.
