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Urban Street scores $12M refinancing for “restaurant row” portfolio in Delray

The Atlantic Avenue portfolio
The Atlantic Avenue portfolio

Alan Hooper and Tim Petrillo’s Urban Street Development just scored $12 million in refinancing for its portfolio of commercial buildings in Delray Beach, allowing the company to pay off its existing debt.

The fixed-rate loan was granted by Mercantil Commercebank with an interest rate of 3.64 percent and a 30-year amortization, according to a news release.

It covers five buildings along Atlantic Avenue, known as “restaurant row,” including the restaurant spaces at 290 and 270 East Atlantic Avenue, a four-story office building at 55 Southeast Second Avenue, and two free-standing eateries at 29 Southeast Second Avenue and 258B East Atlantic Avenue.

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County records show Urban Street, through a holding company, had an $8 million mortgage secured by the properties from Bank of America. With this new financing, the release stated, Urban Street can pay off its outstanding debt and “recapture some equity” from the buildings.

The deal was announced by commercial real estate firm Berkadia, whose Senior Director Brad Williamson brokered the loan on behalf of Urban Street.

Coral Gables-based Mercantil, which is owned by Venezuala’s Mercantil Servicios Financieros, recently lent $21 million in acquisition capital to Moshe and Joseph Popack for the purchase of North Miami apartments. The lender also gave $31 million to developers Jose and Ariel Bromberg to refinance their newly built Aventura office building.

Back in Delray, Urban Street’s portfolio is 100 percent occupied by tenants like Vic & Angelo’s and Taverna Opa, coworking company Office 55 and restaurant/lounge Il Bacio. Urban acquired the properties in 2008, which were then only 37 percent leased, and sank $3 million into renovating the spaces. — Sean Stewart-Muniz

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