Co-op underlying mortgages have always been a specialty of our firm, and it is not unusual for us to attend one or more co-op board meetings per week in order to provide advice to co-op boards and brainstorm with board members, discussing the pros and cons of different approaches to consider in refinancing the co-op's underlying mortgage and credit lines.
Our approach is to engage in consultation and advice first, helping a co-op board to evaluate whether or not it makes sense to consider refinancing, and if so, to then help them to navigate towards the best possible option to meet their current and future needs.
Winter & Company has arranged hundreds of co-op underlying mortgages since the company was founded with a focus on co-op underlying mortgages in 1989. Contact Gregg Winter at (212) 532-1122 x1 or firstname.lastname@example.org to discuss your building's scenario and goals.
We recently closed a $28,000,000, 3.25% 10-year, interest-only underlying mortgage for a 171-unit, 32-story cooperative in Fort Lee, New Jersey. Our loan will provide more than $6 million of surplus proceeds for much-needed repairs and capital improvements. The loan is being placed with a balance sheet lender that will not securitize the loan. The prepayment penalty on the new loan will be based on a simple, step down formula as follows: 5%, 5%, 4%, 4%, 3%, 3%, 2%, 2%, 1%, 1%.
Another recent closing was the $20,000,000 refinancing of a 21-story, 150-unit cooperative located on Manhattan's East End Avenue. We obtained a new $18,000,0003.25%, 10-year fixed rate mortgage along with a $2,000,000 unsecured credit line to replace the co-op's old 6.12% mortgage. See the scrolling banner below for more examples or click here.
With the U.S. economy gaining steam, interest rate increases cannot be far behind, so our advice would be to review your current loan documents to see whether it may be feasible for your co-op to take advantage of today's ultra-low interest rates. Winter & Company always stands ready to perform a no-obligation prepayment penalty and cost/benefit analysis for your co-op. We routinely assist co-op boards in calculating their yield-maintenance or defeasance prepayment penalties in order to explore the pros and cons of refinancing. Once again, last November Gregg Winter was asked to speak at the Council of New York Cooperative's Annual Housing Conference about financing for co-ops.
Winter & Company can expertly assist your co-op in the refinancing of its underlying mortgage. Part of our service includes giving advice as to the best possible terms and structure for your mortgage, credit line, or mortgage/credit line combination. We have handled hundreds of co-op underlying mortgage transactions over the past 25 years; therefore we bring a great deal of market knowledge, skill and experience to each assignment. Furthermore, we work with every lender active in offering underlying mortgages to co-op corporations, and we take a great deal of pride in negotiating the best possible terms for our co-op board clients.
Email or call Gregg Winter today to discuss your co-op's financing (212) 532-1122 x1.