Meridian Capital Group, LLC

Real Estate Weekly, April 19, 2000

Meridian Capital Group, LLC has announced that it has successfully placed $14.328 million in three first lien mortgages through various lending institutions.

The first transaction was in the amount of $2.278 million and was placed on a three-story, 45,969 square-foot office building on Old Country Road in Hicksville, NY The loan featured a fixed rate of eight percent and a 10-year term.

Meridian negotiated a new mortgage of $2.8 million on a 121-unit. six-story elevator building on 76th Street in Jackson Heights, NY. The loan featured a blended rate of 7.625 percent and a 10-year term, The special feature of this loan was that although the client had a prohibitive yield maintenance penalty on the existing loan, Meridian was able to convince the lender to keep the loan in its portfolio, be flexible on the prepayment penalty, and deliver a very low rate to the client.

Meridian also negotiated a new mortgage of $9.25 million on a three-story industrial building in Maspeth, NY, with a rate of 200 basis points floating over LIBOR.

building in Maspeth, NY, with a rate of 200 basis points floating over LIBOR.

The special feature of this loan was an earnout, where the borrower will be able to draw down significantly more money as the income of the property increases, due to renting up of more spaces.