CBRE has arranged a refinancing package for a large rent-stabilized multifamily asset in the Midwood section of Brooklyn. The property, totaling 175 units, is located at 430 and 499 East 8th Street and remains fully within the rent-stabilized framework.
The new financing totals $15 million and was originated on behalf of ARM Management. The loan was provided through Four Leaf Credit Union, with CBRE serving as the intermediary between borrower and lender.
CBRE’s Capital Markets team, consisting of Judah Hammer, Jeff Feldman and Jack Hayes, led the assignment. The team structured the debt to address the sponsor’s priorities around predictability of payments and operating flexibility in the current lending landscape.
The refinancing is structured as a five-year loan with a fixed interest rate of 6%. The execution also includes two years of interest-only payments, which can help the borrower manage near-term cash flow and capital needs at the property.
Another notable feature of the loan is the absence of a prepayment penalty. That structure gives ARM Management the option to refinance or repay early without incurring additional costs if market conditions or business objectives shift over the term of the debt.
According to CBRE, the combination of fixed-rate financing, an initial interest-only period and flexible prepayment provisions is intended to provide stable capital while preserving optionality for the borrower. The deal highlights ongoing lender appetite for stabilized, rent-regulated multifamily assets in established New York City neighborhoods, even as underwriting and pricing continue to adapt to the broader interest-rate environment.
The transaction underscores the role of credit unions such as Four Leaf Credit Union as capital providers for multifamily borrowers, working alongside national intermediaries like CBRE to deliver tailored loan structures. For ARM Management, the refinance resets the capital structure on the Midwood property with clearly defined terms for the next five years.
