Here are some examples of recent deals that we’ve placed as well as an indication of how various lenders are pricing different kinds of loans these days.

At the end of December we closed a $14.5M construction loan for a new ground-up, 7-story, 38-unit rental building with indoor parking on Berry Street in Williamsburgh. This deal was priced at LIBOR + 285 b/p for 85% loan-to-cost limited-recourse financing.

We recently closed 2 construction loans under $10M in Cobble Hill, Brooklyn. Both were 75% loan-to-cost deals. On Dean Street between Boerum Place and Smith Street the pricing was 250 b/p over LIBOR for a 10-unit condo development loan, and on Bergen Street the pricing was 200 b/p above LIBOR for a 4-unit ground-up condominium development between Court Street and Boerum Place. The pricing for the Bergen Street deal was particularly good based on the strong liquidity and net worth of the developer  and is about as good as pricing today gets for deals under $50M. All three of the above-referenced loans were full recourse.

In Fort Greene we arranged 2 condominium construction loans for the same developer: $4.2M for the construction of 10-unit, mixed-use condominium on Vanderbilt Avenue priced at LIBOR plus 285 b/p, and the borrower has also accepted a term sheet for an $8.6M construction loan on an 11-story, 19-unit 34,000SF condominium project on Adelphi Street, for which we were able to obtain pricing of LIBOR plus 190 b/p. Based on the general trading range of today’s 1-month LIBOR rate, the developer’s initial rate will be just above 5%. Not too bad for a construction loan in the midst of a credit crunch!

Across the border in Jamaica Estates, Queens, we closed a $40.650M loan to finance the construction of a 485-bed student housing facility. This 90% loan-to-cost construction loan was priced at LIBOR + 180 b/p structured with a forward commitment for a permanent loan upon completion. Today the leverage available for this deal would undoubtedly be lower.

In Manhattan on East 84th Street, we arranged $22M in financing for an ultra-luxury condo development comprised of a $19M construction loan along with $3M of mezzanine financing. The 24-month construction loan was priced at 225 b/p over LIBOR and the mezz was priced in the mid-teens.

Just last week we had a $31M construction loan approved for the development of a cutting-edge, glass and steel 14-story, 11-unit ~33,000SF mixed-use condominium with retail/gallery space adjacent to the High Line in West Chelsea. In fact, this exotic and expensive design cantilevers up and 18 feet over the High Line. While this loan may have been financed at 70-75% loan-to-cost nine months ago, in today’s cautious environment the loan closed at only 65% LTC.

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