"This approach enabled us to get terrific terms for our clients," Bassuk tells GlobeSt.com, adding that he fully expects to use this approach again. "It's absolutely in the client's best interest."
SBO arranged the permanent financing for S&P/DM 26 Development LLC, a company composed of members of the Steinberg & Pokoik families and the DeMatteis Organizations. SBO had also arranged a $64.4-million construction loan for Chelsea Tower, which also contains approximately 16,000 sf of retail space and a parking garage.
Bassuk notes that in arranging the financing, "we initially created strong competition between Fannie Mae DUS lenders and Freddie Mac seller/servicers for the right to represent the owners with Fannie Mae and Freddie Mac to provide permanent financing for the project." Then after Fannie and Freddie representatives were selected, Fannie, Freddie and various securitized and portfolio lenders actively competed for the right to provide the permanent financing, he says.
Bassuk adds that the marketplace has become even more competitive of late--placing borrowers in a great position. "Securitized and portfolio lenders have become highly competitive with Fannie Mae and Freddie Mac, the traditional lending agencies," Bassuk says. "These lenders are now underwriting loans in very flexible, creative ways providing benefits sometimes not available with agency financings. The pricing was razor sharp and the structure was exactly what the client wanted."
"SBO provided comprehensive advice regarding project financing, as well as providing us with extremely attractive offers from various lenders as to structure, proceeds and pricing," Michael Steinberg, president of Steinberg & Pokoik Management Corp., notes.
James O'Reilly and Evelyn Savino worked closely with Bassuk on this transaction. SBO is a locally based mortgage broker and advisory firm.
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