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NEW YORK CITY-The Singer & Bassuk Organization closed a $105 million permanent loan for Harlem USA, a retail and entertainment complex on 125th Street between Frederick Douglass Boulevard and St. Nicholas Avenue. The five-level project is about 285,000 gross sf.

SBO arranged the permanent financing with Hypo Real Estate Capital Corp. for HUSA Management Co. LLC, an affiliate of Gotham Organization Inc. and Grid Properties Inc. The Hypo loan was used to refinance an existing $53.8 million securitized permanent loan which was defeased as part of the transaction.

Richard Bassuk tells GlobeSt.com that the deal has been in the works for six months. “It required a lot of work in the current market, especially due to the need for defeasement of the original $53 million securitized loan,” he says.”During the time we were seeking the loan, the financial market was extremely volatile with interest rates and spreads in a constant state of flux, making consummating the loan on terms acceptable to the borrower a real challenge.”

Bassuk says he believes that “this deal is indicative of a growing trend toward the redoing of permanent financing of existing projects as a way for developers to free up capital in an increasingly challenging lending market.” James O’Reilly and Evelyn Savino worked closely with Bassuk on the transaction.

In 1998, Gotham co-developed and constructed the Urban Complex. The property is leased to Old Navy, Nine West, New York Sports Club, HMV Records, Modell’s Sporting Goods and a nine-screen Magic Johnson Theater.

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