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NEW YORK CITY-Approximately $83 million in construction financing under the New York State Housing Finance Agency's 80/20 program has closed for a project on the Lower East Side. The owner/developer of the property is an affiliate of Edison Properties LLC and Hunter Roberts Construction Group.
The apartment at 188 Ludlow St., will total 208,000 sf with 6,000 sf of retail space. Once it's completed in 2008, it will contain 243 units. In addition to providing 20% low-income housing, the developer is setting aside 5% for moderate-income tenants. The joint venture leased the land from Edison Properties LLC under a 99-year agreement. The building was designed by Costas Kondylis & Associates.
The Singer Bassuk Organization arranged the construction leasehold financing including financing provided by low-floater tax-exempt bonds issued by the HFA. It also included a credit enhancement in the form of an $83-million letter of credit for the HFA bonds provided by Helaba. Richard Bassuk, president of SBO, also arranged a forward commitment on permanent financing from Helaba. "This cutting edge financing is the first time a commercial bank has agreed to provide permanent financing on such advantageous terms and is a very positive development for project owners. In the past, permanent financing has been provided by either Fannie Mae or Freddie Mac through a DUS lender." The firm's James O'Reilly and Evelyn Savino also worked on the financing.
Gary DeBode, president of Edison Properties, said the project was designed to "complement and enhance this historic neighborhood and to meet the needs of the many people who want to enjoy the area's exciting stores and restaurants." Other recently completed SBO transactions include the $135-million construction loan financing and $155-million permanent financing for the Marc under HFA's 80/20 residential program as well as the $120-million financing for 88 Leonard St. under HFA's Liberty Bond Program. The firm also completed the $104-million construction and permanent financing for Chelsea 27th Apartments under HFA's 80/20 residential program, the $145.2-million construction loan and $165-million permanent loan for 63 Wall St. under the Liberty Bond Program with HDC in addition to the $82.9-million construction and permanent financing for 90 Washington St. under the Liberty Bond Program.
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