Credit Lines

Mixed-Use Property FinanceCredit Lines can be secured or unsecured, and can be either “revolving” or “one-way” facilities. Generally, a credit line is a floating-rate credit facility that can stand at the ready to provide future cash which may be needed for repairs or capital improvements years after a mortgage closing. We most often place credit lines along with underlying mortgages for co-op corporations, giving them a way to handle unforeseen expenses in the future. In other cases, a credit line may be available for low-leverage multifamily buildings as well as for real estate portfolios.

Credit line pricing typically ranges from 175 - 350 basis points above LIBOR, or .5% to 1% above the Prime rate. One major advantage of an unsecured credit line in New York is the ability to avoid mortgage-recording tax, which is 2.8% in New York City for amounts greater than $500,000. Another advantage is the flexibility of being able to pay down a credit line without any prepayment penalty.

See a Credit Line example:

$10,000,000 unsecured line of credit closed for a co-op on Manhattan's Upper West Side


149 MADISON AVENUE | NEW YORK, NY 10016 | 212-532-1122 | FAX 212-532-1222 | INFO@WINTERANDCOMPANY.COM

Commercial Property Type: Multi-Family - Apartment Buildings | Mixed-use Properties | Co-op Underlying Mortgages & Credit Lines | Office Buildings | Retail Buildings | Warehouse - Industrial Buildings | Hotels - Hospitality | Self Storage | Net-Leased | Owner-Occupied | Commercial Co-ops & Condominiums | Specialty Properties

Commercial Mortgage Services Provided: Permanent Commercial Real Estate Loan | Bridge Loans | Construction Loans | Transitional Properties - Structured Finance | Mezzanine Financing | Credit Lines | Equity Financing | Joint Ventures | Development Consulting

Featured Commercial Mortgage Transactions | Commercial Real Estate Loan Checklists | Mortgage Forms and Applications | Commercial Mortgage / Finance Articles | About Winter & Company Commercial Real Estate Finance | Commercial Mortgage and Financing FAQ's | W Financial | Private Mortgage Investment | Commercial Mortgage Glossary | Site Map | Commercial Mortgage Links

Copyright © 2017 Gregg Winter | Red Zebra Design Associates. All Rights Reserved.