Houlihan-Parnes Realtors

Real Estate Weekly, April 5, 2000

Jack Houlihan of Houlihan-Parnes Realtors has arranged a $1 million construction and permanent first mortgage per the new construction of a 22-unit garden apartment building to be built in Chester, Orange County, New York. The interest rate will float at 1.25 percent over the prime lending rate on the construction loan and then will convert into a permanent loan at certificate of occupancy at either 2.25 percent over the five-year Treasury issue or at 2.5 percent over the 10-year Treasury issue. Payments on the construction loan are interest only while payments of the permanent loan will be based upon a 25-year amortization schedule. The prepayment penalty on the permanent loan will be of a flexible, sliding scale nature and the lender charged a 1 percent fee for both the construction and permanent financing combined.

The subject property will be built on 2.2 acres of land and will be a two-story garden apartment building in addition to the renovation of an existing four-family house. The 22 new units will include 17,216 square feet of total rentable space and the builders are based in Westchester and Orange Counties. The funding was provided by a local bank.