Acquired between 2008 and 2011, the Property is an assemblage of four contiguous lots totaling 17,750 sq. ft., with 152 feet of linear frontage on East Fordham Road between Belmont and Cambreleng Avenues; situated directly across the street from Fordham University’s campus. Since its initial acquisition, the Ownership has invested substantial capital and time to rezone the location and increase available FAR, which benefited the Property and surrounding neighbors. In 2018 the Ownership retained a development team and commenced the development process. The project is approved and will be shovel-ready in 1Q2023, with a construction timeline of approx. 30 months. Upon the completion of construction and receipt of a Certificate of Occupancy, the Ownership will stabilize the cash flow of the asset followed by a refinancing into a permanent loan. Once stabilized and cash-flowing, the Ownership intends to hold and operate the property on a long-term basis, without a projected sale to a third-party.

The Property is currently unencumbered and has an estimated present value of $15 million. The underwritten project budget is estimated at approx. $77.7 million including (i) soft and hard costs; (ii) financing and closing fees; and (iii) present land value. Based on Sponsor’s underwriting, the as-complete value is estimated at $97.3 million, using a stabilized NOI of $4.625 million and a 4.75% terminal cap rate.

Highline is seeking to obtain construction financing for the development phase of the project . The proposed loan will be secured by a senior mortgage position, carry a term of 36 months, and contain an interest reserve for the duration of the construction and pre-stabilization periods.