Ariel Property Advisors’ Capital Services Group has arranged a series of construction and conversion loans totaling more than $17 million for condominium projects in New York City. The financing was secured from private lenders for three separate developments located in Brooklyn and Queens.
An Ariel team led by senior director Matthew Dzbanek and director Nicholas Campoli arranged the loans on behalf of the developers. The assignments covered ground-up condo construction as well as the conversion of an existing property to residential condominium use.
One of the loans is a $6.85 million non-recourse condo construction facility structured at 75% loan-to-cost. Proceeds will fund an eight-unit condominium development in Long Island City. The non-recourse feature and relatively high leverage indicate that lenders are willing to underwrite smaller, targeted residential projects in this submarket.
A second loan totals $5.5 million and is structured as a two-year, full-term interest-only, non-recourse facility. The financing supports a 24-unit condo conversion in Richmond Hill. Terms include a floating rate of SOFR plus 5.25% with leverage again set at 75% loan-to-cost. The combination of full-term interest-only payments and non-recourse execution suggests that the sponsor was able to obtain borrower-friendly terms despite ongoing selectivity in the debt markets.
The third transaction is a $4.7 million condo construction loan that will fund a four-unit development in Williamsburg. While specific rate details were not disclosed for this loan, it adds to the overall package of privately sourced construction capital that Ariel arranged across the three projects.
Dzbanek noted that condominium construction activity in New York City is particularly strong at the moment, especially for projects that are expected to deliver affordable units. He added that Ariel has been running highly competitive financing processes for condo conversion assignments, often generating more than 10 viable quotes for clients to evaluate.
The trio of loans highlights ongoing private-lender appetite for small and mid-sized condo projects in Brooklyn and Queens, with sponsors able to access leverage around 75% loan-to-cost and secure non-recourse terms. It also underscores the continued role of intermediary firms such as Ariel Property Advisors in sourcing and negotiating construction and conversion financing in an active but selective lending environment.
