United American Land, the developer of the Soho Mews condominium, said it is close to paying off its $129 million construction loan to PB Capital, a few months before the loan matures, Crain’s reported. The payment is a major victory for the 68-unit project at 311 West Broadway, between Grand and Canal streets, which was designed by Gwathmey Siegel & Associates. Tough economic times forced the developer to slash prices by 12 to 15 percent at the seven-story building, which is now 70 percent sold. “It’s a successful project, given the adversity faced by the entire market,” said Albert Laboz, who runs United American Land with his two brothers. “Once we finish paying off the construction loan, we will start recouping our equity.” Peter Hannigan, a managing director at PB Capital, confirmed that the developer was about to pay off its loan. [Crain's]

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The rules of the game have changed for an investor to obtain mortgage
financing, according to the majority of the 12 lenders who participated
at the New York Real Estate Summit I hosted last month. Forget deals with project rent growth assumptions; the only way a bank
or insurance company is going to lend money is with hard facts.
Transactions must show the hard realities of today. Gino Martocci, a senior vice president at M&T Bank, made a comment
that was echoed by all of the traditional lenders on the panel: “We are
lending to our best customers, customers who have worked with the bank
for years, who have a strong financial statement and the capability to
support a loan even in the worst of times.” Wendy Silverstein, executive vice president at Vornado Realty Trust,
noted: “The larger the loan size, the harder it is to get it financed.” [more]