$10 million underlying mortgage in Flushing, Queens
Winter & Company has successfully arranged a $10 million underlying mortgage for this six-building, 502-unit, 70-year-old cooperative community occupying nearly 10 acres with 336 parking spaces on Union Street in the Flushing neighborhood of Queens, New York.
Whereas most co-op underlying mortgages are utilized to refinance an existing or maturing loan, this 100% owner-occupied cooperative has never before had an underlying mortgage.
The purpose of the loan is to finance an extensive series of capital projects, ranging from waterproofing and Local Law work, to roof and window projects.
Winter & Company was able to lock in a 15-year, fixed-rate interest-only loan for the co-op with the rate locked at application with a rate of 3.02%. The co-op will not need to escrow for real estate taxes or insurance, nor will it be required to establish any depository relationship with the lender.
The new mortgage will provide the co-op with approximately $9,500,000 of net loan proceeds. Given the 15-year term of the loan, the loan structure also enables access to multiple tranches of future funding, so there will be no need to refinance the loan in order to have access to capital to continue property improvements in the years to come. Winter & Company arranged the financing with a major life insurance company.