NEW YORK CITY-A $104-million loan for the Aston apartment complex in Chelsea closes. The transaction, which utilizes the newly formulated 80/20 financing structure that was designed for this marketplace, was arranged by the Singer and Bassuk Organization.

Richard Bassuk, president of SBO, says the firm also completed a variety of financings on the project. First, Bassuk tells GlobeSt.com, SBO worked with Matthew Adell to find an equity partner for the acquisition. SBO then arranged the construction financing for Chelsea 27th Street Apartments LLC comprising affiliates of Matthew Adell and Cornerstone Real Estate Advisers, Inc., a wholly owned subsidiary of Massachusetts Mutual Life Insurance Co. The financing was provided by low floater tax-exempt and taxable bonds issued by the New York State Housing Finance Agency under its 80/20 program, with credit enhancement for the HFA bonds provided under a newly formulated program that GMAC developed with Fannie Mae.

According to Bassuk, Adell and his father, Leonard, are responsible for creating the booming Chelsea residential area as they had fought for 15 years to change the zoning in the area. “It was a massive undertaking,” he says. Adell adds that in acting as broker and financial advisor to the venture from inception, Bassuk successfully “arranged the joint venture, construction financing and forward commitment.”

Financing 80/20 projects is highly labor intensive and takes specialized knowledge. To provide the necessary services, SBO has in-house specialists fully experienced with such projects. Bassuk indicated that he is actively working on other substantial 80/20 and Liberty Bond transactions, some of which are expected to close shortly.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.