With the 10-year Treasury note trading at very attractive rates, cooperative apartment buildings and owners of multi-family buildings are taking advantage of low rates and refinancing.
Perhaps the best rates — as low as 5 percent on
five-year fixed loans — are offered by government-chartered companies, which include Freddie Mac and Fannie Mae.
Commercial and savings banks are providing attractive financing for terms of five to 10 years with rates as low as 4.85 percent to 6 percent.
Daniel Harris, executive vice president and chief lending officer at the Dime Savings Bank of Williamsburgh, said: “It has become a very competitive market with existing and new players originating multi-family mortgages. It is a great time for a borrower to lock in a record-low mortgage rate.”
One of the newest players to join the New York City multi-family rental financing market is Investors Savings Bank of New Jersey. In January, the bank opened an office at One Grand Central Place, at 60 East 42nd Street. Domenick Cama, COO of Investors Savings Bank, said: “Portfolio lenders view multi-family lending in solid New York City neighborhoods as a very good investment in these turbulent times. This means good deals for multi-family property owners.”
A few months ago, appearing on my television show, James Carpenter, chief lending officer of New York Community Bank, perhaps the most active lender for multi-family apartments, noted that the bank is planning to provide close to $3 billion in financing in the multi-family sector in 2010.
Joining New York Community Bank, Investors Savings in providing financing and Dime Savings Bank of Williamsburgh are Ridgewood Savings, M&T Bank, Capital One, Signature Bank, Herald National, Astoria Federal, TD Bank, Oritani, Wachovia as well as National Cooperative Bank, the latter for co-op apartment buildings.
Michael Stoler is a columnist for The Real Deal and host of real estate programs “The Stoler Report” and “Building New York” on CUNY TV and on WEGTV in East Hampton. His radio show, “The Michael Stoler Real Estate Report,” airs on 1010 WINS on Saturdays and Sundays. Stoler is a director at Madison Realty Capital as well as an adjunct professor at NYU Real Estate Institute, and a former contributing editor and columnist for the New York Sun.