Benefit Street Partners Realty Trust Inc., a publicly registered non-traded real estate investment trust, provided a $115.5 million loan to the owner of a 400+ unit multifamily apartment building located in the Rego Park neighborhood of Queens, New York.
The loan was used to pay off existing debt and fund certain carrying costs and will allow the borrower to execute its business plan at the property by funding property upgrades including high end renovations in the units, creation of a new amenity space, and lobby and fitness center renovations.
“BSPRT was able to move incredibly quickly to close a very complicated transaction, utilizing our middle market, industry leading flexible balance sheet,” said Michael Comparato, head of commercial real estate. “We provided the senior mortgage, senior mezzanine and junior mezzanine all under one roof, which provided the borrower excellent execution.”
The three-year, interest-only floating-rate loan comprises senior mortgage and mezzanine components and bears a floating interest rate over LIBOR.
Benefit Street Partners Realty Trust primarily originates, acquires and manages a diversified portfolio of commercial real estate debt investments secured by properties located within and outside the United States. The company commenced operations in May 2013, and as of the third quarter of 2018, the company had approximately $26 billion of assets under management. Formerly known as Realty Finance Trust and managed by AR Global, Benefit Street took over as the company’s new advisor at the end of September 2016.
In 2018, Benefit Street Partners entered into an agreement to be acquired by Franklin Resources Inc., a global investment organization operating as Franklin Templeton Investments. The transaction is expected in the first quarter of 2019.