Office Owner Secures Atypical Refi

JPMorgan Chase provided a 10-year loan with a fixed interest rate to refinance 27 E. Broadway, a seven-story office building in Manhattan’s Chinatown neighborhood. The owner of the building, Kee Yip Realty, took out the loan for $3.6 million at a 4.4% fixed interest rate.

Such financing is highly unusual. Usually, balance sheet lenders, such as banks, offer loans with shorter terms and floating interest rates. That’s because the cost of capital for the bank might be much higher at the end of the term of a long-term loan than the rate fixed today.

“Thanks to the property’s prime location and Meridian’s strong lender relationships, we were able to negotiate favorable terms with a competitive balance sheet lender and close the loan in less than 60 days,” said Blake Orman with Meridian Capital Group, which negotiated the transaction.

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