Financing found for unsold co-ops

Real Estate Weekly, July 7, 1993

Despite lenders' general disinclination to fund unsold units in co-op buildings, the real estate investment banking firm of Jerome J. Steiker & Co., Inc. has arranged financing for the acquisition of 152 such apartments in four Yonkers buildings.

What's more, President Jerome J. Steiker was able to effect loan approval within a mere 30 days of the loan application--and at favorable terms for the borrower.

The five-year non-recourse loan featured both fixed-rate and floating rate components, and provided for favorable release clauses and flexible amortization geared to the future sale of individual units.

The borrower is a coalition of domestic and international investors; the lender is a federal savings institution. The four buildings are in southwest Yonkers, facing Bronx River Parkway on the east side and within walkingdistance of the Mount Vernon train station. They were all converted to cooperative ownership in 1987, and all of the remaining apartments have been bought by individual owners. The funding covers the following properties:

* 39 apartments (152 rooms) at 52 Yonkers Terrace, a six-story building erected in 1964

* 38 apartments (143 rooms) at 345 Bronx River Road, a seven-story building erected in 1959

* 45 apartments (167 rooms) at 355 Bronx River Road, a seven-story building erected during the 1960's

* 31 apartments (116.5 rooms) at 365 Bronx River Road, a six-story building erected in 1959