|Dealmaker of the Day|
Apollo Commercial Real Estate Finance, New York, closed two mezzanine financing transactions totaling $43 million in New York and Rochester, Minn.
The commercial mortgage real estate investment trust provided an $18 million mezzanine loan secured by a pledge of the equity interests in the owner of two buildings in midtown Manhattan. The buildings contain 181,000 rentable square feet currently in the process of conversion into 215 multifamily rental units. Apollo’s mezzanine loan represents part of a $90 million, three-year--two-year initial term with a one-year extension option--interest-only, floating-rate financing.
The loan’s interest rate of LIBOR plus 10 percent will increase to LIBOR plus 11 percent as certain mortgage funding hurdles are met.
Apollo also provided a $25 million mezzanine loan secured by a pledge of the equity interests in the owner of a portfolio of four hotels totaling 1,231 guest rooms in Rochester, Minn., within walking distance of the Mayo Clinic health care facility. The mezzanine loan, part of a $145 million five-year, fixed-rate loan, has an interest rate of 11 percent.
Finally, Apollo extended its master repurchase facility with JPMorgan Chase Bank, New York, to extend the term for one year with a one-year extension option. Pricing on the JPMorgan facility will remain at LIBOR plus 2.5 percent and Apollo will pay a 0.5 percent fee for the first year and a 0.25 percent extension fee for the second year. The company uses the JPMorgan facility primarily to finance its first mortgage loan investments.