CRG inks $46m loan on East Village multi-family

Real Estate Weekly, August 15, 2007

CRG Realty Capital, LLC of Englewood, N.J. has closed a 10-year loan with Prudential Mortgage Capital Company at favorable rates and terms on behalf of PS 71 Associates, LLC.

The $46.5 million interest only deal is secured by a 125-unit class-A multi-family property located at 190 East 7th Street. The property is one of the few full-service apartment complexes in the East Village and it features a large courtyard, health club, laundry facilities, and numerous roof decks. The deal was consummated at Treasuries plus 1.15 for 10 years.

According to CRG President Mitchell Adelstein, "The capital market appetite for interest-only fixed-rate debt changed 180 degrees from the time we began marketing this deal in mid-April. 75% of the lenders that were providing i/o debt in April were out of the market by mid-May. Fortunately, the lender we chose, Prudential Insurance, has a 140-year history of providing financing solutions to NYC multi-family owners.

"Prudential understood that this was a high quality asset that has consistently out-performed the East Village market in terms of its occupancy and rent rates."