Apollo Commercial Real Estate Finance, Inc. (ARI), a real estate investment trust managed by an indirect subsidiary of Apollo Global Management, LLC, announced this week that it had closed two loan transactions totaling $84.9 million. Apollo provided a $22.5 million mezzanine loan for a Pittsburgh mixed-use property and a $62.4 million whole loan for a New York City commercial building. According to a company press release, with the addition of these closing the company's 2013 investment activity year-to-date totaled $277.9 million of commercial real estate debt transactions with an underwritten weighted average IRR of approximately 14%.
"ARI continues to see interesting transactions in our core first mortgage and mezzanine lending businesses that offer attractive, risk-adjusted returns," said Scott Weiner, Chief Investment Officer of ACREFI Management, LLC, the manager of Apollo Commercial Real Estate Finance. "The mezzanine loan for the mixed-use property has strong, well-capitalized sponsorship. The whole loan for the residential conversion represents a highly-structured transaction in a prime location for a premier New York City real estate developer. Both transactions are structured with floating interest rates, which we believe will be beneficial to ARI in a rising interest rate environment."
The transactions include the following:
- $22.5 million mezzanine loan secured by a pledge of the equity interest in a borrower that owns a mixed-use property located in the central business district of Pittsburgh, PA and consists of a 27-story multi-tenant office building, an adjoining 616-key convention center hotel, and a 479-space underground parking garage.
- $62.4 million whole loan, which is split into a $33.0 million first mortgage and a $29.4 million mezzanine loan secured by a pledge of the equity interests in a borrower that owns an eight-story commercial building in the Greenwich Village section of New York City. The whole loan will fund the conversion of the existing building into a 12-story luxury residential condominium consisting of approximately 37,000 square feet comprising eight residential units and approximately 3,600 square feet of ground-floor retail space.
For more news and information visit Blumberg Capital Partners.
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