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The Capital Services Group at Ariel Property Advisors has arranged a condominium inventory loan totaling $11.8 million for a newly constructed residential condominium property in Upper Manhattan. The financing supports a 20-unit condo project that has recently been delivered and is preparing to enter the for-sale market.
An Ariel Property Advisors capital markets team led the assignment for the borrower. Senior director Matt Swerdlow headed the effort, working alongside director Anthony Priest and senior associate David Khukashvilli to structure and secure the debt. The mandate focused on both recapitalizing the asset and providing the sponsor with flexibility to complete the business plan.
The loan is structured as a 9.5% interest-only facility with an 18-month term and a 70% loan-to-value ratio. According to Ariel, the financing enabled the borrower to cash out at a level 20% above the existing bank construction loan. By refinancing into this structure, the borrower unlocked additional capital and established reserves intended to support the final stages of the condominium development process.
In addition to recapitalizing the project, the loan is designed to give the sponsor an 18-month runway to bring the units to market and execute the sellout strategy. The structure provides time to manage sales velocity and pricing while maintaining control over the pace of absorption, rather than being constrained by the prior construction loan.
Swerdlow described the assignment as one that demanded a swift and precise execution. He noted that by restructuring the project’s capital stack and recalibrating the financing terms, Ariel Property Advisors was able to position the property for a more orderly and controlled sellout. The new loan is intended to give the borrower greater flexibility in determining how and when to release units to buyers.
The transaction underscores the role of specialized capital services teams in arranging tailored condo inventory financing for newly delivered residential projects. By replacing the original construction facility with a short-term, interest-only loan, the borrower gains both liquidity and time to complete the development, finalize sales planning, and navigate the disposition of all 20 units in a measured fashion.
The post Ariel Property Advisors Arranges $11.8M Condo Inventory Loan for Upper Manhattan Project appeared first on CRE Market Beat.
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