WESTLAKE VILLAGE, CA - Knighthead Funding LLC has provided a New York-based investor group with a $19.1 million senior loan to refinance a portfolio of 156 unsold co-op apartments in the Riverdale section of the Bronx, NY.
The units, which were acquired by the sponsor in 2016, are located within Skyview on Hudson, a three-building, co-op complex totaling 1,309 apartment homes located at 5700, 5800 and 5900 Arlington Avenue.
Knighthead’s 36-month financing will be used to take out the existing lender with a portion of the proceeds to be used to renovate vacant units and prepare them for sale.
“This was a really unique opportunity to finance excellent real estate with a sponsor with a 25-year track record in this space,” said Henry Boeckmann, a Vice President at Knighthead. “It required a lot of due diligence, but our comfort level increased as we dug in and discovered that it’s an exceptionally well-located project, decked with a ton of amenities; it’s basically a little oasis located within a market that continues to experience strong fundamentals.”
“This is another example of Knighthead’s ability to structure loan transactions, where the underlying business plan and loan basis are quite compelling, yet, does not necessarily fit the lending parameters of traditional lending institutions,” noted Jonathan Daniel, Knighthead Principal.
About Knighthead Funding: Knighthead Funding, LLC is a national real estate finance company specializing in loans for the acquisition, renovation, construction and refinancing of commercial real estate across all asset classes. Knighthead originates loans for its managed real estate debt funds and Knighthead Annuity & Life Assurance Company. Knighthead Funding is an affiliate of Knighthead Capital Management, LLC, a New York-based SEC registered investment management firm.