A portion of the proceeds from the transaction was used to repay a $22.5-million bridge loan provided by KeyBank National Associations, according to Richard Bassuk, president of the Singer and Bassuk Organization, which arranged both transactions. Specifics including pricing and availability, whether or not they will be rentals or condos are not available because Moinian does not have the proper authorization from the state attorney general yet, according to an SBO spokesperson. James O'Reilly and Evelyn Savino worked on the transaction with Bassuk.

SBO arranged the construction financing with KeyBank National Association for an affiliate of Moinian. Bassuk credit's the group's "creative approach to retrofitting existing projects to more profitable uses. This is an important step forward in the continuing revitalization of Downtown New York City following the events of Sept. 11." The former club, which is a landmark building, is located just blocks from Ground Zero.

This transaction continues a long-standing relationship between the parties. Previously the pair worked together on financing for 17 Battery Place, a 440,000-sf office building across from Battery Park. SBO also completed the first Liberty Bond deal financed by the New York City Housing Development Corp. for Moinian's 90 Washington St. project. The amount of that financing was $82 million. Moinian Group's managing member Joseph Moinian notes that SBO arranged both a bridge loan and construction loan for this project. "We have hired SBO to work with us on several other new projects."