Detroit-based developer Platform received a $ 62 million debt package to refinance a multipurpose property in the city, the Commercial Observer learned.
Limekiln Real Estate Investment Management provided financing that included an 88 percent non-recourse bridging loan at a floating rate of 3.45 percent compared to a 30-day LIBOR (London Interbank Offered Rate) rate and full interest payments only, CO reported. Meridian Capital Group Manager Noam Kaminetski and vice president Ralph Gelly negotiated the deal from the company’s Boca Raton, Florida office.…
Situated on 2911 West Grand BoulevardOne mile north of downtown Detroit, the newly built 207,000-square-foot property comprises a multi-family unit with 231 apartments, 17,500 square feet of retail space and 330 parking spaces. Amenities for the apartment complex include a fitness center, business center and courtyard.
“The lease of this newly built building was delayed due to COVID and the borrower needed more time to stabilize the asset before seeking permanent debt,” Kaminetski said in a statement. “The lender was able to recapitalize the construction loan to allow the repayment of existing debt and private partnership loans, cash out some of the borrower’s equity and secure future financing based on the achievement of certain milestones.”
Kaminetsky added that the deal is fraught with “complexities,” including structuring it around tax breaks and financing tax increases.
Officials for Limekiln and The Platform did not immediately respond to requests for comment on the transaction.