BROOKLYN, NY - $51,000,000, in two separate loans, was arranged by Brad Domenico, Partner at Progress Capital, for Jorge Madruga of Maddd Equities and Eli Weiss of Joy Construction to complete two borough acquisitions. The acquisitions include 77,675 sf of paved parking along River Road at the intersection of McClellan Street in the Bronx and the 115,000 sf American Self Storage Building located at 202-208 Tillary Street in Brooklyn.
"Parking lots and self-storage facilities are an often-misunderstood asset class, and as such securing a mortgage when acquiring such properties can be challenging with the difficulty in forecasting future projections and potential uses while navigating zoning and height restrictions for future development. Working with Domenico we were able to not only secure financing quickly, but also increase the leverage of both borrowings with flexible prepayment terms," mentioned Jorge Madruga of Maddd Equities.
The River Avenue parcel will be the eventual site of two affordable housing towers which will include 172,000 sf of residential space, ground level retail and sub-grade parking. Ownership will continue to operate the Tillary site as self-storage until they finalize their plans to convert it into a 235,000 sf residential building. The project will operate under the city's mandatory inclusionary housing policy with 25% of its units to be permanently affordable.
Both loans are interest only bridge loans to provide time for ownership to execute their development plans. Domenico negotiated the amount and terms of the loans with Jared Zimmel of Natixis. Neal Sroka of Douglas Elliman brokered both sides of the sale transaction.