Citizens Bank provides $51m loan on Connecticut apartments

Citizens Bank provided a $51.3 million construction loan on Park Square West Phase IV Apartments, a high-rise development in Stamford, Connecticut.

Stamford, CT
Stamford, CT

Citizens Bank provided a $51.3 million construction loan on Park Square West Phase IV Apartments, a high-rise development in Stamford, Connecticut.

The three-year, floating rate loan to a joint venture between developers Trinity Financial and Berkshire Group carries a 65 percent loan-to-value, with a spread of less than 250 basis points over LIBOR.

Mark Fisher, senior vice president at CBRE Capital Markets, called it a “complicated transaction… involving many moving parts.”

“There were the intricacies of forming a joint venture with an equity partner, working with the city of Stamford in many respects, moving construction costs, and building on a parcel that has common interests shared with another apartment complex, a movie theater, a municipal parking deck, and a co-joined parking garage,” he told Real Estate Capital.

Gary Magnuson, executive vice president and head of commercial real estate finance at Citizens Bank, said the company had previously provided Trinity Financial with an $18 million construction loan on the Harrison Tower affordable housing development in downtown Boston.

“Trinity was pleased with that team and with the fact that we are able to provide a one-stop shop where they can work with our CRE team on market-driven projects and our Community Development Lending Group on affordable housing projects,” said Magnuson.

He added that the lender also had a previous banking relationship with Berkshire Group.

The 1011 Washington Boulevard property is Trinity’s second project in Stamford after its successful completion of a 6,800 sq ft retail building at 66 Summer Street.

The property will include a roof deck lounge, residents lounge, club room, game room, yoga studio, children’s playroom.

Citizens Financial Group, the bank’s parent company, is headquartered in Providence, Rhode Island and is one of the nation’s oldest and largest financial institutions, with $138.2 billion in assets as of December 31, 2015.

Trinity Financial, founded in 1987, specializes in public housing authority mixed finance projects and has completed or is currently developing over $1.46 billion in real estate, including over 6,700 residential units. Berkshire Group is a real-estate development company that focuses on the multifamily sector and manages approximately $6 billion in real estate assets worldwide, according to the companies’ websites.