{"id":151,"date":"2020-11-06T18:13:52","date_gmt":"2020-11-06T18:13:52","guid":{"rendered":"http:\/\/winter.think33.com\/?post_type=deals&p=151"},"modified":"2020-11-06T18:13:52","modified_gmt":"2020-11-06T18:13:52","slug":"20000000-3-25-underlying-mortgage-for-a-150-unit-upper-east-side-cooperative","status":"publish","type":"deals","link":"https:\/\/www.winterandcompany.com\/deal\/20000000-3-25-underlying-mortgage-for-a-150-unit-upper-east-side-cooperative\/","title":{"rendered":"$20,000,000 – underlying mortgage for a 150-unit Upper East Side cooperative"},"content":{"rendered":"\n

We had been retained by the board of directors of this co-op to advise and structure a $20,000,000 underlying mortgage and revolving credit facility <\/strong>for a 21-story, 150-unit, full-service luxury cooperative building with a rooftop pool, full gym, garden and garage located on East End Avenue<\/strong> on the Upper East Side of Manhattan.<\/strong><\/p>\n\n\n\n

At the time of this financing, the borrower’s main focus was to obtain a new, 10-year, fixed-rate, interest-only mortgage with a 3.25% interest rate to replace their old 6.12% mortgage. <\/strong>In addition, this cooperative also <\/strong>required a $2,000,000 unsecured, revolving line of credit<\/strong> in order to provide flexibility to address unforeseen future capital improvements and repairs. The unsecured, revolving credit facility also saved the borrower $56,000<\/strong> ($2,000,000 x 2.8%) in NYC mortgage recording tax, (compared to the cost of a secured credit facility like a credit line mortgage).<\/p>\n\n\n\n

As is often the case, Winter & Company seeks to customize the loan structure to meet the specific needs of each client. In this co-op’s case, two other factors of this financing are worth highlighting: The co-op’s old mortgage had a large yield-maintenance prepayment penalty. For this co-op, a strategy of locking in a new, low rate for their new underlying mortgage, but delaying the closing by six months saved them a considerable amount of money by reducing the cost of the pre-payment penalty on their old mortgage.<\/p>\n\n\n\n

This cooperative also wanted to have the ability, should they decide to do so, of being able to utilize surplus cash flow to pay down up to 10% of their remaining principal balance per year without triggering a prepayment penalty. In the event of such principal reduction, their mortgage payments would also be adjusted accordingly going forward. Although this is a highly unusual and non-standard feature in the commercial mortgage marketplace, we were able to successfully negotiate this option for our client. The many post-war, white brick, 60’s-era buildings all over Manhattan’s Upper East Side are notoriously expensive to maintain and this co-op needed to emerge from the financing with ample cash reserves to address their foreseeable capital needs.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

We had been retained by the board of directors of this co-op to advise and structure a $20,000,000 underlying mortgage and…<\/p>\n","protected":false},"featured_media":0,"template":"","deal-category":[3],"acf":[],"yoast_head":"\n$20,000,000 - underlying mortgage for a 150-unit Upper East Side cooperative - Winter & Company<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.winterandcompany.com\/deal\/20000000-3-25-underlying-mortgage-for-a-150-unit-upper-east-side-cooperative\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"$20,000,000 - underlying mortgage for a 150-unit Upper East Side cooperative - Winter & Company\" \/>\n<meta property=\"og:description\" content=\"We had been retained by the board of directors of this co-op to advise and structure a $20,000,000 underlying mortgage and…\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.winterandcompany.com\/deal\/20000000-3-25-underlying-mortgage-for-a-150-unit-upper-east-side-cooperative\/\" \/>\n<meta property=\"og:site_name\" content=\"Winter & Company\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.winterandcompany.com\/deal\/20000000-3-25-underlying-mortgage-for-a-150-unit-upper-east-side-cooperative\/\",\"url\":\"https:\/\/www.winterandcompany.com\/deal\/20000000-3-25-underlying-mortgage-for-a-150-unit-upper-east-side-cooperative\/\",\"name\":\"$20,000,000 - 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