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SBO on cutting edge with $83m bond deal.

Richard Bassuk, president of The Singer and Bassuk Organization, announced the closing of $83 million in construction financing under the New York State Housing Finance Agency's ("HFA") 80/ 20 Program for 188 Ludlow Street, a 208,000 s/f property located on the lower east side of Manhattan which will contain 243 residential apartments and approximately 6,000 square feet of retail space.

In addition to providing 20% low-income housing, the developer is setting aside 5% for moderate income tenants. The owner developer of the property (an affiliate of Edison Properties, LLC and Hunter Roberts Construction Group) leased the land from Edison Properties, LLC under a 99-year lease. The building was designed by Costas Kondylis & Associates.

SBO arranged the construction leasehold financing for the 188 Ludlow Street project, including financing provided by low-floater tax-exempt bonds issued by the New York State Housing Finance Agency ("HFA") under its 80/20 Program, together with credit enhancement in the form of an $83 million Letter of Credit for the HFA bonds provided by Helaba, a commercial bank.

Bassuk, who also arranged a forward commitment on permanent financing for the project from Helaba, said, "This cutting edge financing is the first time a commercial bank has agreed to provide permanent financing on such advantageous terms and is a very positive development for project owners. In the past, permanent financing has been provided by either Fannie Mae or Freddie Mac through a DUS lender."

Gary DeBode, president of Edison Properties, LLC, said "2006 marks Edison's 50th anniversary. Entering into residential development in this dynamic location is the perfect way to celebrate this milestone. 188 Ludlow has been designed to complement and enhance this historic neighborhood and to meet the needs of the many people who want to enjoy the area's exciting stores and restaurants."

Bassuk added, "SBO provides owners/developers with the highest level of attention and service available in the industry in connection with both bond issuance by HFA or HDC (New York City Housing Development Corporation), as well as obtaining the necessary credit enhancement for the transaction." The services provided include not only the analytical, processing, and brokerage services described above, but also providing advice on the structuring of the transaction, as well as various aspects of its development and construction.

The completion of the 80/20 financing for the 188 Ludlow Street project marked SBO's latest success in completing financings of projects under the 80/20 and Liberty Bond Programs. Others include the $135 million construction loan financing and $155 million permanent financing for the Marc.
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Title Annotation:Singer and Bassuk Organization; Housing Finance Agency
Publication:Real Estate Weekly
Geographic Code:1USA
Date:May 17, 2006
Words:424
Previous Article:$285m loan for Silverstein, CalSTRS joint venture.
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