The project is located in the Greenpoint neighborhood of Brooklyn, NY. The sponsor asked for max proceeds with flexibility regarding the reserves, interest rates, origination fees and future requisitions. In addition, we were able to negotiate a partial reimbursement of equity that had been spent since the acquisition of the site in 2017.
The sponsor obtained approved plans and had greatly improved the value of the site since the purchase of the land and air rights from an adjacent building. The terms were appealing for the sponsor and exceeded what a conventional lender would be able to provide.
Urban Standard Capital also aligned itself with the sponsor regarding the working capital balance, handling of retention and deposits in the contract to ensure that the sponsor would have liquidity throughout the construction process. The loan closed in October of 2019 and work on the site has recently started. Some improvements on the site include demolition and excavation work is currently underway. When complete, the building will consist of 10 high-end condo units over retail (6 floors with a rooftop deck). Projects like these help improve the Greenpoint neighborhood replacing what was previously a vacant and damaged building.