The Real Deal New York

Crest snags $25M loan for UES rental

Mesa West Capital provided the acquisition financing for 118 East 93rd Street in Carnegie Hill

July 29, 2016 08:37AM

118 East 93rd Street in Carnegie Hill (inset from left: Bruno Caruso and Russell Frahm)

118 East 93rd Street in Carnegie Hill (inset from left: Bruno Caruso and Russell Frahm)

Montreal-based Crest Realties has landed a $25 million loan from debt fund Mesa West Capital to finance its acquisition of a Carnegie Hill rental building.

“We’ve done a lot of these deals recently, so we had a good sense of the rents and it’s a good asset, a good location and a good leverage point,” Mesa’s Russell Frahm told the Commercial Observer.

Crest, led by Bruno Caruso and Aaron Drazin, picked up the Carnegie Hill rental at 118 East 93rd Street for $39 million last week. The 43,000-square-foot building has 38 apartments, the majority of them market-rate.

“The loan closed under a tight time-of-essence deadline and provided for the initial acquisition financing as well as a future funding component for capital expenditures,” said Ronnie Levine of Meridian Capital Group TRData LogoTINY, who arranged the mortgage with Jeff Berkes.

Caruso and Drazin plan to increase the average rents from $3,000 per month to $6,500 or $7,000 per month as units turn over. “We want to upgrade it to a luxury, high-end rental,” Caruso told The Real Deal.

Crest recently sold a Carroll Gardens condo-to-rental conversion for $21.1 million and a four-building Washington Heights portfolio for $31.2 million. [CO]E.B. Solomont

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