Financing is arranged for new Hoboken apartment complex

Real Estate Weekly, Oct 25, 2000

G.S. Wilcox & Co., commercial mortgage bankers in Morristown, N.J., have recently completed financing two of Hoboken's newest apartment properties. The two properties total 128 residential units with some commercial spaces on the ground floor. Gotham City Real Estate Services, L.L.C. is the developer of the two properties located at 1017 and 332 Jefferson St.

James Stathis, a principal of the borrowers, commented regarding the projects, "Due to the expertise of our General Contractor (Gotham City Real Estate Services, L.L.C.) and the economically efficient services of our Mortgage Banker, G.S. Wilcox & Co., 1017 Jefferson("The Ballpark") is exceeding the forecasted occupancy date and the Ltiqipated cash flow. We especially liked the construction/permanent package David Fryer of G.S. Wilcox & Co. put together for us regarding 332 Jefferson ("Gotham Mills"). We were able to forward lock the rate for construction then roll the loan to a self liquidating pen-nanent. It's comforting to know that our debt service for the life of the loan is fixed at a very competitive rate. We enjoyed working with G.S. Wilcox & Co. and look forward to our next deal with them."

ING Investment Management, one of G. S. Wilcox & Co.'s corresponding lenders, was flexible enough to make the two fixed rate loans with a bit of unique structure to satisfy the needs of the developer. Besides the structural features of the loans, ING was very flexible and realistic when it came to the environmental issues borrowers and lenders are sure to face in Hoboken. "With the fill that was used to create a lot of what is now Hoboken we had to be very dilligent with our discovery of what environmental conditions were realistic and pertinent and what was inevitable given the location, which treated property will not have a negative impact on the properties or security of the loan."

"The Ballpark" was financed with a loan amount of $8,000,000, $125,000 per. unit, with a self-liquidating 15-year term. The permanent loan was placed with a one-year interest only period to allow the completion of the second phase of the property. The first phase consisting of 50 units was completed and fully occupied at closing. The lender closed the loan with 14 units still under construction using a prorata escrow until the remaining units were occupied. The three- and partial four-story building provides off street parking for 64 automobiles.

"Gotham Mills" was financed with a construction-to-permanent loan. This project was also 64 residential units with an additional 3,000 square feet of retail commercial space on the ground floor. The construction funds will be used to convert two older industrial buildings and add three new structures, all of which will be connected into one building which will be ready for tenants in late 2001. The 14-month construction note will automatically convert into a 13-year and 8-month self-liquidating mortgage. The loan amount was $6,925,000, which carries a fixed rate of interest throughout the life of the construction period and amortizing loan period. Once completed, the 3 partial 4 story building will be fully elevatored and contain parking for 64 cars. This property and its architect Sergio Guardia were featured in The New York Times "House & Home" section in July for the reuse of the older structures and the unique architectural interest of the property's facades and layout.

The loans were arranged by Gretchen Wilcox and David Fryer. G.S. Wilcox & Co. is a full service commercial real estate mortgage banking firm which originates, underwrites and services loans. The Company is headquartered in Morristown. G.S. Wilcox & Co. arranges financing for commercial real estate across the 'entire spectnim of product types including office, retail, warehouse, industrial and multi-family properties. The company's corresponding lenders include: Aid Association for Lutherans, Allianz of America, Inc., Artesia, Broadview Financial, Business Men's Assurance, Carillon Advisors, G.E. Financial Assurance, IDS Life Insurance Company.