The seven buildings were previously built in conjunction withthe military, which then held the property under an 801C, which isa program where the US military holds a master lease on all theapartment buildings around a military base--in this case Fort Drum.The property taxes are deferred for 20 years when the 801C expires,after which the space reverts back to the original builders.

|

Dan Palmier, president and ceo of Potomac, tells GlobeSt.comthat the bridge loan will mostly be used to pay off the deferredtaxes on the property, which amount close to $10 million. Potomacwill pay closing costs around $1 million and the estimatedrenovations are $2 million, which will leave $7 million to pay thereturn of equity to the original builders in a cash-outsettlement.

|

Although no specific prices were disclosed, Palmier says theunits are "available currently" as "market rate rental properties"for both civilian tenants, as well as military personnel. Fort Drumis the home of the 10th Army Mountain Division, located in upstateNew York.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.