Manhattan Tower Lands $75M Refi Loan
Greystone closed the Fannie Mae loan to refinance Edison Properties’ 23-story luxury high-rise located on the Lower East Side.
The Ludlow
Greystone has closed a $75 million Fannie Mae loan made to an affiliate of Newark, N.J.-based Edison Properties toward the purchase of The Ludlow, a 241-unit, mixed-income multifamily tower on Manhattan’s Lower East Side.
The new 15-year fixed-rate permanent loan refinances the original construction-to-perm credit facility provided by Helaba Landesbank Hessen-Thuringen in 2006.
“One of the most significant challenges with this transaction was structuring around the upcoming burn-off of the 421-a tax abatement,” Greystone Bassuk Capital Markets Advisory Group president Drew Fletcher told Multi-Housing News. “We dealt with this by extending the loan term [to] 15 years versus 7 or 10 years to push the maturity out beyond the expiration of the tax abatement, and also by building in amortization to make sure there would be sufficient cash flow coverage as the benefits phased-out.”
Fletcher was joined in the deal by Ken Rogozinski, executive managing director, and Matt Klauer, managing director of Greystone Bassuk Capital Markets Advisory Group.
Located at 188 Ludlow St., on the corner Ludlow and East Houston Street, The Ludlow is part of a vibrant Lower East Side enclave. The 23-story tower features 210,000 square feet, including 5,500 square feet of ground-floor retail. Sixty-two of the 241 units—accounting for approximately 25 percent of the property’s residential component—are set aside for low- to moderate-income households.
Top Manhattan Location
Completed in 2008, The Ludlow offers expansive floor plans, floor-to-ceiling windows with unobstructed views of Midtown and Downtown Manhattan. Among common-area building amenities are fitness center with yoga-pilates studio, rooftop sundeck, resident lounge with billiards-media room, 24-hour concierge and on-site parking.
One of the fastest-growing districts in New York City, the Lower East side is home to a wide array of eateries, cafes, nightspots and galleries.
“Our goal for this transaction was to convert to long-term permanent financing at a fixed rate to mitigate future interest rate exposure and provide additional term to transition beyond the upcoming burn-off of the 421-a tax abatement,” Fletcher said. “Greystone Bassuk delivered an execution that exceeded our expectations while putting the project on solid footing for the long term.”
Greystone’s Lending Business Head Billy Posey and Senior Managing Director Jeff Englund collaborated on the structure for the borrower, spearheading the loan process for the company.
Late last year, Greystone worked on behalf of a private buyer to secure a $92 million Freddie Mac loan for the acquisition of Lincoln Green, a 636-unit property in Philadelphia
Image courtesy of Greystone
