Stuart Bruck of Time Equities, Inc

Real Estate Weekly, March 1, 2000

Stuart Bruck of Time Equities, Inc. recently announced the closing of two construction loans totaling $12.85 million.

The first loan closing of $5.5 million has a term of three years and an interest rate equal to the sum of Prime Rate plus 1 percent. The loan was used to acquire a 12-story prewar loft building with 41,464 square feet of space, and convert it to a luxury residential condominium apartment building. The loan proceeds were used to acquire the property and fund building-wide capital improvements and construction of luxury loft-type residential apartments.

The second loan closed for $7.35 million. The proceeds of the loan will be used to transform an existing underutilized, almost vacant older industrial building into a communications facility housing equipment for the phone industry. The loan proceeds will be advanced to pay for new building systems, tenant improvements, leasing commissions, and to refinance the existing debt. The building is located in Philadelphia, not far from City Hall. To date, approximately 30 percent of the space has been leased to a major phone company. It is the plan of the borrower to reposition the property to attract phone and telecommunication tenants who have hearing equipment. The loan was placed with a Pennsylvania commercial bank. It was structured with a two-year construction period with interest at Prime plus 1 percent. The loan has a term of 10 years, providing for an option to be exercised by the borrowers to set up a fixed loan with the same lender.