A dormitory at the New School just scored a roughly $92 million loan from Wells Fargo.
Bhatia Development Organization and Sherwood Equities received the 10-year loan to refinance the property at 318 East 15th Street, Located Across From Stuyvesant Park Near Second Avenue, Commercial Observer reported.
The interest-only, fixed-rate loan includes a new gap mortgage of roughly $5 million and replaces a $94 million Wells Fargo loan made in 2014, according to public records spotted by the publication. Bhatia and Sherwood still owed $87 million at the time of the refinancing and declined to reveal the rate on the new deal. However, Commercial Observer reported that it is less than 4 percent.
“I’ve been in business for 40 years. There are very few times you can get an opportunity to lock in a rate at under 4 percent,” Arun Bhatia, the president of Bhatia, said.
Refinancing the loan and placing it in a commercial mortgage-backed securities pool will give Bhatia and Sherwood more flexibility to make upgrades to the property, while lowering their interest rate. [CO] – Christopher Cameron