Marcus & Millichap Capital Corp. (MMCC) has arranged $10.5 million in financing for the 41-story, one million-square-foot office condominium at 633 Third Avenue.
The condominium association required substantial funds to update and modernize mechanicals and infrastructure of the over 50-year old property. Due to the condominium association structure and lenders’ inability for a first mortgage lien position, many lenders were reluctant to finance, as the only security for the loan was association assessment fees. Having previous experience with this structure, MMCC was able to identify a local and regional lender pool that was comfortable with lending on the condominium structure.
“The loan was fixed at closing for 12 years at an interest rate in the low 4.0% range and allowed the borrower to draw down the funds over the first two years of the loan as improvements were done and ultimately amortizing the balance over next ten years,” said Daniel Lisser of MMCC in Manhattan. Lisser and Rick Lechtman, also with MMCC in Manhattan, arranged the financing.