New York, NY — Lument has provided a $14.5 million Freddie Mac conventional loan to refinance 800-830 Empire Boulevard, a 35-unit mid-rise multifamily property in Brooklyn, New York. Kristian Molloy, associate director at Lument, led the transaction.
“Freddie Mac proved to be a timely and effective financial solution for the refinance of this community, as the loan refinances existing debt with a low, fixed interest rate and seven-year term, two years of which are interest-only,” said Molloy. “Not only was the sponsor able to consolidate and pay off short-term debt, it also benefitted from $3.5 million in recouped equity that can be used for capital improvements and new projects.”
After purchasing the land in 2015 for $2.3 million, the borrower invested $15.1 million to build the community, which successfully opened in 2020. That success is demonstrated by the community’s 100% occupancy rate as of June 2021.
The apartment building consists of 15 one-bedroom units, 15 two-bedroom units, five three-bedroom units, and a ground floor commercial space that is currently leased to a daycare. Eleven of the 35 units are rent stabilized and reserved for low-income renters. Amenities include underground parking, bicycle storage, and a furnished rooftop deck.
The deal was brokered by Joseph Saul of RidgeRock Asset Management Group, a repeat client of Lument.
About Lument
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. Securities, Investment Banking and Advisory Services provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.
