March 8, 2017
An investor bought 128 unsold retail condominiums in an Upper West Side tower, with help from a $11.7 million mezzanine loan provided by RCG Longview. Financing also included a $30.1 million permanent loan from a major commercial bank.
The condo units had negative cash flow when the loans closed. The prior owner converted the 29-story tower at 100 West 93rd St. from 279 unit rental apartments to condos. Many sold — but 128 remain occupied by rental tenants, and New York City has long list of laws that protect tenants from eviction.
The flexible loans can provide “tenant buyout” money to rental tenants willing to move, in addition to cash for renovations and carrying costs.
The financing has a three-year term, with two extensions, and an annual blended interest rate of LIBOR plus 5.8%. Because the property lacks cash flow, a portion of that interest rate is allowed to accrue.
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