News Column

The Bassuk Organization Announces Closing of $210,000,000 Financing for Major New York City 80/20 Project

February 7, 2014

By a News Reporter-Staff News Editor at Real Estate Weekly News -- Richard Bassuk , President of The Bassuk Organization, Inc. , and Co-Chairman and Chief Executive Officer of Greystone Bassuk Group , announced the closing of a $210,000,000 credit enhancement from Helaba Landesbank Hessen-Thuringen and PNC Bank, National Association under The New York State Housing Finance Agency ("HFA") 80/20 Program for an affiliate of J.D. Carlisle Development Corp. ("Carlisle"). The financing was structured with $111,445,000 of Series A low floater tax-exempt bonds and $30,000,000 of Series B taxable bonds issued by HFA in 2013, with the remaining $68,555,000 of tax-exempt bonds to be issued in 2014. Proceeds from the bonds will be used to finance construction of Carlisle's 319-unit 80/20 residential project known as 160 Madison Avenue . The project is located on Madison Avenue between 32nd and 33rd Streets , and contains approximately 29,100 sq. ft. of retail space. 80% of the residential units, or 265 units, will be market rate apartments. The remaining 20% of the residential units, 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 ("AMI"), and 12 units rented to tenants whose household incomes are at or below 40% of AMI. " Mr. Bassuk acted as financial advisor and ably assisted us in the analysis of all aspects of the 80/20 Program and processing with HFA," stated Jules Demchick , Chairman of Carlisle, a leading developer in New York City . "We are delighted with the results achieved and look forward to working with Mr. Bassuk and his team again," stated Evan Stein , the President of M.D. Carlisle Construction Corp. , the construction manager for the project, and a principal of the developer. "Financing 80/20 projects is highly labor intensive and takes specialized knowledge. 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," said Mr. Bassuk . He stated that, "TBO acts as the developer's Owner Representative for the entire 80/20 process and provides owners/developers with the highest level of service available in the industry." Evelyn Savino worked with Richard Bassuk to close the transaction. About The Bassuk Organization / Greystone Bassuk Group TBO is a real estate finance intermediary and advisory firm serving a select group of New York City's most prominent developers and investors. Working strictly on an exclusive basis, TBO delivers exceptional financial expertise and creativity. The Greystone Bassuk Group , a joint venture between The Bassuk Organization and Greystone , a leading national provider of multifamily loans, provides expanded real estate and financial services, including creative debt and equity financing. Keywords for this news article include: Real Estate, The Bassuk Organization Inc. Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC

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Source: Real Estate Weekly News

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