Monday, June 26, 2006

248-Unit Complex Secures $16M in Financing

MIAMI-The 248-unit Biscayne Beach Club at 10560 SW 156th Place has received $16 million in financing.

Seth Grossman, of New York-based Meridian Capital’s Florida office, negotiated the loan that has a rate of 5.875% over a seven-year term with an interest-only portion. One of the noteworthy aspects of the transaction was that Grossman and Independence Community Bank honored a quoted rate of 5.875% although the loan closed when treasuries were above 5%.
The loan was a portfolio loan with no reserves and no rate lock fees. Grossman tells that the loan was a long-term refinancing of the property. “It was an aggressive rate, the lowest rate we could find so the owner decided to go with it,” Grossman says.
Biscayne Beach Club contains a lakefront beach, jogging trails, a fitness center and several pools. The complex contains units with one bedroom and one bathroom that range in size from 564 sf to 718 sf and rent for $800 to $900, and units with two bedrooms and two bathrooms that range in size from 954 sf to 1,021 sf and rent for $1,070 to $1,100.

“Our ability to deliver a loan exactly as quoted despite the treasuries rising 40 points in the interim--without ever having the rate locked--creates a relationship between a bank, a borrower and a broker that lasts decades,” Grossman says.

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