While we have noted the sprawl of luxury condos and apartments springing about in New York City, the renovation of properties around the city spans the gamut of income levels. The common denominator between all renovation projects is the money available. The story of a recent project in the Bronx is an example of this.
According to a recent globest.com report, the Morgan Group recently refinanced a group of multifamily buildings comprised of apartment and retail units. It reportedly partnered with Meridian Capital Group to provide $148.6 million in permanent funding for the properties.
The properties will be financed through a cadre of five year loans, which feature fixed rates of 3.13% and three years of interest only payments. It remains to be seen how the savings in loan payments will be used, but if the market for renovations is any indicator, chances are that it will be used to rehabilitate other properties to make them suitable for today's changing marketplace.
Transactions like these require the guidance and expertise of experienced legal counsel. After all, the negotiation of financing is a key part of any successful real estate transaction, whether it is the construction of a brand new property or the renovation of an existing one. As we alluded to earlier, the presence of funding can be everything. Without the promise of payment, no work will be completed.
So if you have questions about funding for real estate projects, and the legal implications of doing it incorrectly, the advice of an experienced real estate attorneycan be helpful.