The lenders for the Azure, the 34-story residential condominium tower at 333 East 91st Street, have converted their $145 million construction loan into a shareholder loan, according to an article at crains.com yesterday by Amanda Fung.
The switch will allow operations and maintenance of the 128-unit building to continue and permit the developers to continue selling units. As each unit is sold, the loan is paid down.
The building had a crane collapse May 30, 2008 in which two people, including one construction worker, were killed, just 24 hours after a stop work order for the site was rescinded. Balconies were torn from that building, raining debris on the street below. The top floor of another neighboring building was also damaged by the tumbling crane.
The crains.com article indicated that with their "rare fresh funding" from HSBC and four other financial institutions, the developers are "on track to sell the 93 apartments left." "So far," the article continued, "seven units have closed and nine are scheduled to close shortly. An additional 19 units are currently under contract."
"'A year ago this would have been difficult to achieve,' said Douglas MacLaury, senior vice president at The Mattone Group, which co-developed the Azure with The Dematteis Organization. 'This indicates that credit is beginning to flow back into real estate and is a testimony to the confidence lenders have in the building,'" the article said.
The building is a "condop," a co-operative with condominium by-laws.
"To help move sales along," the article continued, "the developers arranged with HSBC Mortgage Corp. to provide homebuyers with financing for up to 80% of the sale price. The move was necessary under tightened Fannie Mae and Freddie Mac guidelines, which requires at least 50% of units in new developments to be sold before guaranteeing mortgages. In fact, five of the seven buyers who recently bought apartments at the Azure took advantage of the HSBC financing, according to Mr. MacLaury."
The development includes a public school and a 75-year lease with the city. Middle School 114 is replaced PS 158 on the site which was vacant.
The building's lobby has an original glass art wall by Weil Studio and 24-hour concierge service, a rooftop terrace, a residents' lounge and dining room, a children's playroom and a fitness center.
The switch will allow operations and maintenance of the 128-unit building to continue and permit the developers to continue selling units. As each unit is sold, the loan is paid down.
The building had a crane collapse May 30, 2008 in which two people, including one construction worker, were killed, just 24 hours after a stop work order for the site was rescinded. Balconies were torn from that building, raining debris on the street below. The top floor of another neighboring building was also damaged by the tumbling crane.
The crains.com article indicated that with their "rare fresh funding" from HSBC and four other financial institutions, the developers are "on track to sell the 93 apartments left." "So far," the article continued, "seven units have closed and nine are scheduled to close shortly. An additional 19 units are currently under contract."
"'A year ago this would have been difficult to achieve,' said Douglas MacLaury, senior vice president at The Mattone Group, which co-developed the Azure with The Dematteis Organization. 'This indicates that credit is beginning to flow back into real estate and is a testimony to the confidence lenders have in the building,'" the article said.
The building is a "condop," a co-operative with condominium by-laws.
"To help move sales along," the article continued, "the developers arranged with HSBC Mortgage Corp. to provide homebuyers with financing for up to 80% of the sale price. The move was necessary under tightened Fannie Mae and Freddie Mac guidelines, which requires at least 50% of units in new developments to be sold before guaranteeing mortgages. In fact, five of the seven buyers who recently bought apartments at the Azure took advantage of the HSBC financing, according to Mr. MacLaury."
The development includes a public school and a 75-year lease with the city. Middle School 114 is replaced PS 158 on the site which was vacant.
The building's lobby has an original glass art wall by Weil Studio and 24-hour concierge service, a rooftop terrace, a residents' lounge and dining room, a children's playroom and a fitness center.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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