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Debt & Equity

Edison Properties converts its debt on Lower East Side apartment building

Commercial lending and advisory company Greystone has closed a $75,000,000 Fannie Mae loan made to an affiliate of Edison Properties for The Ludlow on the Lower East Side.

Located at the southeast corner of Ludlow Street and East Houston Street, the 23-story project contains 241 residential units across approximately 210,000 gross square feet, including 5,500 s/f of ground floor retail. 62 of the total units, or approximately 25 percent, are set aside for low- and moderate-income households.

The Greystone Bassuk Capital Markets Advisory Group, led by president Drew Fletcher, with support from Ken Rogozinski and Matt Klauer, served as exclusive advisor on behalf of the borrower and placed the Fannie Mae loan through Greystone’s Affordable Lending Team.

Billy Posey, head of Greystone’s Lending Business, and Jeff Englund, senior managing director, collaborated on the structure for the borrower and spearheaded the loan process for Greystone.

The new 15-year fixed-rate permanent loan refinances the original construction-to-perm credit facility provided by Helaba Landesbank Hessen-Thüringen in 2006.

Originally completed in 2008, the building’s amenities include a fitness center, rooftop sundeck, resident lounge with billiards and on-site parking.

“We are extremely proud to have represented Edison on this exciting transaction,” said Fletcher. “Originally assembled and operated as a parking lot over 40 years ago, The Ludlow is a testament to Edison’s vision and commitment to investing in neighborhoods for the long-term.”

“Edison is thrilled to deepen its relationships with both Greystone and Fannie Mae with this financing,” said Tony Pinto, CFO of Edison.

“Our goal for this transaction was to convert to long-term permanent financing at a fixed rate to mitigate future interest rate exposure and provide additional term to transition beyond the upcoming burn-off of the 421-a tax abatement. Greystone Bassuk delivered an execution that exceeded our expectations while putting the Project on solid footing for the long-term.”

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