PHILADELPHIA-Locally based Rimas Properties has secured more than $32.2 million in financing for three projects here. The loan is from an "overseas bank with a large presence in New York and the United States," says Spencer Garfield, managing director of Hudson Realty Capital, based in New York City. Hudson Realty Partners purchased a $16.1 million B-note investment secured by first liens on two of the properties and a mezzanine position on the 1352 Lofts development. The B-note investment is equal to about half of the loan amount and the loan to value "is south of 65%," Garfield says. The projects include 1352 Lofts, a mixed use development and a vacant industrial building.
The 1352 Lofts project, on South Street, is close to being finished, Garfield says. The project has 72 condominium units, about 10,500 sf of retail space and 89 parking spaces. The $45-million project is on the 27,000-sf site three blocks south of Kimmel Performing Arts Center at the intersection of South Street and the strip of Broad known as the Avenue of the Arts, as previously reported by GlobeSt.com. Twenty of the condominium units have been sold and about 1,700 sf of the retail space has been leased, according to industry sources.
The mixed-use development will be on a 5.41-acre site on the corner of Broad Street and Washington Avenue. Rimas is using the financing "to acquire the properties and for some predevelopment work," Garfield says. The development is still in the planning stages and further details about the development were not available.
The vacant 290,000-sf industrial building at 2400 S. Weccacoe Ave. was acquired by Rimas for $8.2 million in the third quarter of 2006, according to a market report from Cushman & Wakefield. Approximately 25,000 sf of the building is office space. "They plan on leasing it up," Garfield says. "They are focusing on a single user." Asking lease rates were not disclosed. The asking lease rate for warehouse and distribution space in Philadelphia County is $4.92 per sf, according to a second quarter market report from Grubb & Ellis.
The investment bank had previously provided financing to Rimas for other projects, Garfield says. The term for the B-note is 12 months. An interest rate was not disclosed. "It was a blended rate between the senior and the B-note rate that was advantageous to the lender," he says.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
