M&T Bank has provided a $26m loan to Cayuga Capital Management for the refinancing of three Brooklyn multi-family rental properties, Real Estate Capital has learned.
The five-year loan will float over libor. The three rental properties — at 184 Noll Street, 324 Melrose Street, and 286 Stanhope Street in Brooklyn’s Bushwick neighborhood — feature 63 residential rental units, primarily two- and three-bedroom, in addition to seven commercial spaces and 28 parking spaces.
“There is tremendous demand for capital in Brooklyn, with every quarter setting records for investment sales and owners looking to lock in lower refinancing rates,” said Jones Lang LaSalle managing director Aaron Appel, who led the team that arranged the financing with senior vice president Michael Diaz.
Brooklyn-based Cayuga Capital Management specializes in the value-add repositioning, renovation and ground up construction of multifamily and mixed-use properties, among a wealth of firms capitalizing on a Brooklyn housing boom that has pushed prices and rents to all-time highs.
Median Brooklyn rents for a two-bedroom apartment hit $3,388 per month in June, but the figure stood at just $2,361 in the Bushwick neighborhood, according to real estate firm MNS, suggesting that plenty of upside still remains for real estate investors and developers.
Cayuga has already turned the properties around, with rental rental prices averaging more than $60 per sq ft, compared to Brooklyn-wide averages in the $38 per sq ft range.
JLL was the fifth largest intermediary of commercial loans last year, arranging nearly $9.8bn in originations.