NEW YORK CITY-Richard Bassuk, president of the Bassuk Organization and co-chairman and CEO of Greystone Bassuk Group, has announced the closing of a $210-million credit enhancement from Helaba Landesbank Hessen-Thringen and PNC Bank, National Association. The deal was done under the New York State Housing Finance Agency‘s 80/20 program for an affiliate of J.D. Carlisle Development Corp.
The financing was structured with $111.4 million of Series A low floater tax-exempt bonds and $30 million of Series B taxable bonds issued by HFA in 2013, with the remaining $68.6 million of tax-exempt bonds to be issued in 2014. Evelyn Savino, VP, worked with Richard Bassuk to close the transaction.
Proceeds from the bonds will be used to finance construction of J.D. Carlisle’s 160 Madison Ave. a 319-unit 80/20 residential project. Situated between 32nd and 33rd streets on the prime retail boulevard of Madison avenue, the building features approximately 29,100 square feet of retail space. Market rate apartments will comprise 80% of the residential units, or 265 units, will be. The remaining 20% of the residential inventory, or 64 units, will be designated affordable housing units, with 52 units rented to tenants whose household incomes are at or below 50% of the New York City area median income, and 12 units are to be rented to tenants whose household incomes are at or below 40% of AMI.
“Financing 80/20 projects is highly labor intensive and takes specialized knowledge,” notes Bassuk. “Demand and opportunity for these developments in New York City continues to grow because of additional benefits, including the 20-year real estate tax abatement available under this program. To provide the necessary services, we have in-house specialists fully experienced with such complex projects.”
Adds Jules Demchick, chairman of Carlisle, “Bassuk acted as financial advisor and ably assisted us in the analysis of all aspects of the 80/20 program and processing with HFA.”
Evan Stein, president of J.D. Carlisle, declares, “We are delighted with the results achieved and look forward to working with Bassuk and his team again.”