Done Deals: Winter & Co. Closes $28 Million Mortgage Transaction on 30-Story Fort Lee, NJ Co-op

Sunday, June 30, 2013

Winter & Co. Closes $28 Million Mortgage Transaction on 30-Story Fort Lee, NJ Co-op

30-Story Fort Lee, NJ Cooperative

NEW YORK, NY, June 30, 2013 -- Winter & Company is pleased to announce the closing of a $28,000,000, 3.25%, 10-year fixed rate, interest-only underlying mortgage for a 171-unit Fort Lee, New Jersey cooperative.

The co-op refinanced an existing $20,000,000 loan and the rate on the new loan is so much lower that the co-op’s annual debt service payments will actually be lower despite a new loan amount that is $8,000,000 greater than their old loan amount.

The 30-story plus Penthouse building has spectacular views of the Hudson River and Manhattan to the east, and of Northern New Jersey to the west.

It was originally designed and built as a co-op in 1975. The nearly $6,000,000 of surplus loan proceeds will be utilized for a variety of repairs and capital improvements as well as to augment the building’s reserve fund.

The loan has a term of 30 years and was structured so that at the end of the first 10 years, the co-op will have four additional 5-year segments available at no additional cost, making this a 30-year total loan term at the co-op’s discretion.

After the first 10 years, the loan will begin to amortize on a 30-year schedule.

The rate was locked upon signing a term sheet with a 1% refundable good faith deposit. The co-op’s new loan has a simple, step-down prepayment penalty formula: 5,5,4,4,3,3,2,2,1,1. The loan closed on May 17, 2013.