Meridian Arranges $155M in Financing for Purchase of Manhattan M-F Property
- Jul 16, 2013
Meridian Capital Group L.L.C. negotiated $155 million in acquisition financing on behalf of Cammeby’s International Ltd., for the purchase of the Monterey multi-family property on Manhattan’s Upper East Side, Meridian announced Monday.
Cammeby’s $252 million purchase of the 29-story, 522-unit Monterey, at 175 E. 96th St., at the corner of Third Avenue, reportedly closed earlier this month.
The 12-year loan was provided by Cornerstone Real Estate Advisers on behalf of an institutional investor and features a fixed rate of 3.78 percent. Meridian managing director Abe Hirsch and senior vice president Zev Karpel negotiated the loan transaction.
“One of the unique drivers of the financing structure for this transaction was the 80/20 regulatory agreement that burns off over the term of loan which necessitated the unconventional 12-year term,” Hirsch said in a press release. “Meridian was able to tap into a highly liquid market with numerous competitive lenders and procure favorable terms that allow the sponsor to execute its investment strategy without sacrificing flexibility.”
The Monterey was built in 1993 and renovated in 2008 and reportedly is 96 percent occupied.
In addition to the 522 residential units, the Monterey has a 209-space parking garage and 3,375 square feet of fully leased retail space. The building’s amenities include 24-hour concierge, a fitness center, heated swimming pool, large rooftop terrace with dining areas and barbeques, bicycle storage room, entertainment and media lounge, and laundry room.
Although Cammeby’s, which is probably best known for its ownership stake in the Woolworth Building, tends to shun publicity, last month it made a high-profile offer to buy the Empire State Building for $2 billion in cash.
The ESB had already been in the news because of the proposed formation of a publicly traded REIT that would own the iconic tower and 20 other buildings, and because of efforts by dissident shareholders to oppose the REIT’s creation.