NorthMarq arranges $63 million permanent loan for retail/office property in New York City

JERICHO, NEW YORK (January 29, 2020) – Charles Cotsalas, senior vice president/managing director of NorthMarq’s Long Island office collaborated with Craig Bjornsund, senior vice president/managing director and Bryan Wylie, vice president in NorthMarq’s New York City office to arrange a $63 Million permanent-fixed financing for a 6-story / ± 105,000 sq. ft. mixed-use, office and retail building located at 622 Broadway in the neighborhood of Noho, New York City. 

The transaction was financed by one of NorthMarq’s correspondent life insurance companies and was structured as a 12-year loan with 3-years I/O followed by a 30-year amortization schedule at 3.39%. The non-recourse (entity-only) loan provided the borrower with a significant cash-out, prepayment flexibility and 1-time right to transfer the property to a third party without changing the loan terms. The lender provided this significant cash-out despite multiple lease rolls, and retail exposure.

“The borrower was extremely sensitive to any recourse and NorthMarq secured a non-recourse, entity only financing,” said Cotsalas. 

The beautiful cast-iron building has been owned by the borrower for over 35-years and will soon undergo roof, sidewalk and building entrance improvements. The subject property is 100 percent occupied with its tenant roster comprised of Bestbuy Co. Inc, a leading provider of technology products, services & solutions; Genesco, a major retailer of branded footwear, headwear and licensed sports apparel & accessories; and Take-Two Interactive, a publisher & distributor of video games.