For Immediate Release: New York: This mortgage provided the new owners with funds to satisfy the tax liens subject to which they had acquired the property. In addition, the loan, with an interest rate that floats above Prime, will provide funds to buy out and to relocate existing tenants, as well as construction funds to allow the developers to build-out a spectacular triplex apartment, which will create even more value.

New York is filled with similar "properties in transition", where a developer may see a new use or an untapped potential that the current owner either can't visualize, or perhaps lacks the time and expertise to effectively implement.

During the construction phase the building's cash flow will, of course, be very limited and accordingly we have structured an interest reserve into the proceeds. After the renovations are complete and the property is fully cash flowing, the loan will convert from a full-recourse loan to a straightforward, non-recourse mortgage.

The mortgage is for a term of two years. It is priced at Prime plus 1% and does not have any pre-payment penalty. The loan closed on February 9, 2001.

Winter & Company specializes in providing advisory services as well as both institutional and private mortgages to commercial real estate owners and professionals nationwide. Its affiliate, W Financial is a direct private bridge and mezzanine lender providing short-term, special situation financing to developers, owners and investors. If you are an accredited investor and would like to learn more about investing in the Fund, visit PrivateMortgageInvestment.com