Chelsea mortgage 110 percent of sale price

New York /
Nov.November 13, 2008 02:00 PM

 
Despite a cooling Manhattan condominium market in which banks have tightened lending requirements, the mortgage for a three-bedroom penthouse apartment in the new Chelsea Stratus was written at a value nearly $500,000 greater than the $4.508 million sale price for the unit.

JPMorgan Chase wrote the $5 million mortgage for PH3C, a 2,263-square-foot apartment, to the Greenwich, Conn.-based buyer, Chelsea Vista Holdings, according to property records posted yesterday. The sale and loan documents were signed October 24, the records show.

Condo loans in New York City that were frequently written at 90 percent or more loan-to-value rate earlier this year have, for the most part, dropped to about 80 percent, mortgage brokers said.

Chelsea Stratus, a 40-story tower at 101 West 24th Street at Seventh Avenue developed by LCOR, opened in mid-May.

JPMorgan did not immediately respond to a request for comment. The buyer’s attorney also did not respond to a request for comment.

Mortgage broker Thomas Wiggin, president of Manhattan-based Thomas Funding Group, said it was unusual for a loan to be written for more than the sale price, but it was not unheard of. He was not involved in the sale and his only knowledge of the transaction was through public documents.

He said there were several ways the borrower could obtain such a sizable loan. The buyer could propose to use the money as a construction loan to remodel or build out the unit which would increase the value of the apartment, or he could put up substantial capital or other assets such as real estate as collateral.

“It is not typical for your average borrower, however it is not unheard of, especially for something in that price range,” he said. “For individuals who have sufficient credit, assets or income, financing is still readily available.”

The LCOR development is nearly sold out, with 199 out of 204 condo units under contract, and nearly all of those have closed, said building sales agent Andrew Anderson, senior vice president at Prudential Douglas Elliman, the exclusive marketing and sales broker on the project.


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Nearly 100K homes sold across UK in August ahead of tax break expiration
Nearly 100K homes sold across UK in August ahead of tax break expiration
Nearly 100K homes sold across UK in August ahead of tax break expiration
One of the many listing photos with dolls for the New Orleans house (NOLA Living Realty)
Creepy dolls helped sell this New Orleans home super fast
Creepy dolls helped sell this New Orleans home super fast
China’s real estate sector rankled investors this week while the Fed signaled it would taper its support of the U.S. mortgage market before the end of the year. (iStock)
Real estate stocks slide as China spooks investors
Real estate stocks slide as China spooks investors
Sculpture artist Robert Hooke’s Sag Harbor home lists for $10M
Sculpture artist Robert Hooke’s Sag Harbor home lists for $10M
Sculpture artist Robert Hooke’s Sag Harbor home lists for $10M
NJ construction official accused of siphoning funds from developers’ account
NJ construction official accused of siphoning funds from developers’ account
NJ construction official accused of siphoning funds from developers’ account
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...