Historic Mixed Use - Acquisition/Predevelopment
JERICHO, NY – ACRES Capital LLC (“ACRES”) announces the funding of a first mortgage loan on a 428,000± gross square-foot office building located at 455 South Fourth Street in downtown Louisville, Kentucky. The property, designed by renowned architect Daniel Burnham (credited with the iconic Flatiron Building in New York City), was built in two phases in 1913 and 1927, last renovated between 1984 and 2005, and registered with the National Registry of Historic Places in 1985 for its architectural and engineering significance. The sponsor intends to redevelop the property to a mixed-use while carefully preserving its architectural integrity. The property, once renovated, will consist of 55,000± SF of retail space; 82,000± SF of office space; 100 upscale, for-rent apartments (104,000± SF); a 200-key, 4/4.5-star, flagged hotel (129,000± SF); and 58,000± SF split between penthouse and basement uses. Loan proceeds were used to fund acquisition of the property and establish reserves/escrows for predevelopment costs, carry costs and debt service.
“What we have here is a financing opportunity on a unique asset that exudes historic character and architectural brilliance. The sponsorship possesses extensive experience in development and adaptive reuse of retail, residential, hotel and office properties and carries a longstanding reputation as master planners, long-term investors, environmental stewards, and best-of-class managers of real estate. The downtown Louisville submarket is dynamic and healthy and continues to strengthen with respect to all of the uses envisioned by the sponsor’s renovation plan. We are pleased to partner up with this developer and help jumpstart redevelopment of such a fascinating piece of real estate,” according to Mark Fogel, President and Chief Executive Officer of ACRES.