Luysterborghs of AVANT Capital Partners originates $3.275 million bridge loan

AVANT Capital Partners has originated a $3.275 million bridge loan secured by a property located at the corner of Flatbush Ave. and Lincoln Rd. in the Prospect Lefferts Gardens neighborhood. The interest-only 24-month loan carries an interest rate of 8% and refinanced the first mortgage. The loan was brokered by Marko Kazanjian of Meridian Capital Group. "Although this was Meridian's first transaction with Avant Capital Partners, the process was efficient and the client was very pleased with the outcome," said Kazanjian. "Additionally, the transaction benefited from Avant's ability to understand and underwrite the potential of this neighborhood and its significant upside." Adam Luysterborghs, founding principal at AVANT originated the loan. Luysterborghs said, "The residential rents in Prospect Lefferts Gardens are still in the $25-30 per s/f range while more established Brooklyn neighborhoods see $50 per s/f and higher for apartment rentals. This emerging neighborhood could see a doubling in residential rents as it improves and this will only lead to rising property values." The 11,943 s/f property contains four ground-floor retail units and five second-floor apartments. It is adjacent to Prospect Park, a block away from the Prospect Park subway stop, which serves the B and Q trains, and the Franklin Ave. subway shuttle. The property enjoys a highly visible corner location on Flatbush Ave., a major north-south artery that provides direct access to Manhattan via the Manhattan Bridge. Demand for residential and commercial real estate in Brooklyn is strong with high occupancy and increasing rents. According to data from Douglas Elliman Real Estate, there were 854 new residential leases signed in March of this year. Days on the market fell 43.4% compared to March 2013. Prospect Lefferts Gardens is undergoing a rapid demographic change. New residential developments are attracting residents from Manhattan who enjoy more affordable rents, proximity to the 585-acre Prospect Park and public transposition access to Manhattan via the B, Q, 2 and 5 trains. Residential rents in Prospect Lefferts Gardens are about 50% lower than in Manhattan.