$5,300,000 million underlying mortgage for a six-story cooperative building in New Rochelle, NY
Winter & Company has successfully arranged a new $5,300,000 million 15-year, fixed-rate, underlying mortgage for this six-story, 159-unit cooperative building situated on 3.15 acres in New Rochelle, New York. This is the third time in approximately 25 years that we have worked with this co-op board.
The board’s goal was to refinance the existing $6,300,000 10-year, fixed rate loan with a new, low-rate mortgage with an even longer term, if possible. It is unusual for a co-op building to reduce the size of its mortgage when refinancing, but in this case, since the co-op had already completed a series of extensive capital improvements over the past decade and did not expect any major expenditures in the foreseeable future, they decided to use a portion of their substantial reserve fund to reduce the size of their mortgage from $6,300,000 to $5,300,000.
The co-op was also interested in locking in their rate for longer than the typical 10-year period, and Winter & Company was able to arrange a new 15-year, fixed-rate, interest-only loan and lock in the rate at 3.09%.
The co-op will not need to escrow for real estate taxes or insurance.
The new mortgage will also enable the co-op to access to multiple tranches of future funding if needed, so there will be no need for them to refinance the loan to access additional to capital for further property improvements in the years to come.