$6,500,000 MILLION FINANCING SECURED FOR MIXED-USE PROJECT IN DOWNTOWN RICHMOND, VIRGINIA

Richmond, VA, October 15, 2009  -- Richmond-based John B. Levy & Company, Inc. is pleased to announce the completion of financing for the Haxall Building located in downtown Richmond, Virginia.  The property is located just a short walk from the James River and the eastern continuation of the canal walk.  The three buildings that comprise Haxall View were originally a cafeteria and part of the cigar manufacturing department of the Edgeworth Tobacco warehouse complex. Haxall is a 40,000+ square foot mixed-use project with loft apartments above retail shops. The retail space allows outdoor seating in a private courtyard, with parking on the lower level.

The transaction is a $6,500,000 loan which has a 2-year interest-only period followed by a 3-year term amortizing over 20 years.  This will allow the developer time to stabilize leasing on the building.  The loan’s proceeds were used to payoff the existing loan at a discount as well as fund reserves for future carry and lease-up.      

“The former lender in the transaction was not in a position to see the building through to stabilization.  Our firm was able to negotiate a discounted payoff which ultimately was favorable to the former lender as well as the borrower,” according to John Levy. 

“Development along the canal in Richmond has flourished in part due to the creative use of historic tax credits,” said Levy.  “This region has a higher rate of utilization of historic tax credits than other urban areas,” said Levy. Many firms shy away from using them due to onerous administrative burden, but here they become a “but for” incentive.

Located at 2101 East Main Street, Haxall is a short walk from the river and the eastern continuation of the canal walk. The Great Shiplock Park, where a historic lock connects the Haxall canal with the James River, is also around the corner. Loft residents are able to take advantage of the amenities of the area without the need of a car. These amenities include a grocery store, drug store, retail shops and many of the city’s finest restaurants. Restaurant and retail tenants serve an existing customer base of young urban professionals supplemented by visitors to the Canal Walk, Shockoe Slip, Rockett’s Landing, Great Shiplock Park and the Farmer’s Market.

John B. Levy & Company is based in Richmond and has structured financing for many of the projects in the historic district including The Turning Basin Building, the Canal Crossing “Tower” and “Annex”, and the Lady Byrd Hat Building and is familiar both with the market and the nuances associated with historic tax credits.

Firm Background

John B. Levy & Company, Inc. is a real estate investment-banking firm headquartered in Richmond, Virginia.  Since John Levy founded the company in 1995, the firm has structured over $3.5 billion in financing for developers and owners of commercial and multi-family projects nationwide, often investing its own proprietary funds into transactions with its clients.  Mr. Levy is an expert on commercial real estate financing and the effects of interest rates on commercial real estate markets.  He is the originator and author of the Barron’s/John B. Levy & Company National Mortgage Survey, a monthly survey of more than 30 of the country’s largest institutional investors, as well as buyers and sellers of commercial mortgage-backed securities, which Barron’s published for over 23 years.  Mr. Levy is also co-creator of The Giliberto-Levy Commercial Mortgage Performance Index (sm), the first and pre-eminent index to measure and analyze the performance of investments in the commercial mortgage industry. Additionally, he is a member of the Board of Directors of Anthracite Capital Inc. (NYSE: AHR), a New York Stock Exchange REIT managed by BlackRock, Inc and a former director of Value Property Trust. 

For more information about John B. Levy & Company, please visit the firm’s website at www.jblevyco.com or call John Levy at 804-644-2000, extension 237.  You may also follow us on Twitter at http://twitter.com/jblevyco and join us on Facebook! 
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