$27 million underlying mortgage and revolving credit facility for a 480-unit, 23-building, garden apartment complex in Bayside, Queens
Winter & Company has successfully arranged a new $27 million underlying mortgage and revolving credit facility for a 480-unit, 23-building, garden apartment complex located in Bayside, Queens. The 376,000 square foot property is situated on 18.5 acres with 252 indoor parking spaces and 190 outdoor parking spaces. Like many properties of similar vintage, this well-managed co-op corporation is about to engage in a series of repairs and capital improvements, and the surplus proceeds of the refinancing will allow them pay for the CapEx and also add to their capital reserves. The unsecured, revolving line of credit will provide the co-op with the availability, (if ever needed), of an additional $2 million, that can be drawn down as required for any future needs, including the evolving requirements of New York City’s Climate Mobilization Act.
The interest rate on the $25 million underlying mortgage was locked quickly at 3.77%, upon the borrower’s acceptance of a term sheet, which proved to be of crucial importance in a rising interest rate environment.
The co-op’s new financing also includes a $2 million, unsecured, revolving line of credit. No New York City mortgage recording tax is required to be paid on an unsecured line of credit, (a saving of $56,000 compared to increasing the size of the mortgage by $2 million), and the lender will charge no annual facility maintenance, or non-use fees (as are common with such facilities).