By reducing the servicing cost of their underlying mortgage
, often substantial due to high rates when the loan was originally made, a savvy board of directors can accomplish a number of desirable goals.
A $4 million underlying mortgage
for a co-op apartment building on 39th Drive in Woodside, N.
The holder of the security has an undivided pro rata ownership interest in the underlying mortgage
assets, or the trust or single purpose entity (or conduit) that issues the security has no liabilities unrelated to the issued securities.
A $14 million first underlying mortgage
for Hyde Park Gardens, a cooperative apartment complex in Kew Gardens, Queens.
Winter & Company Commercial has placed a new $5 million underlying mortgage
on a Prime 100 unit cooperative located on West 72nd Street near Riverside Drive on Manhattan's Upper West Side.
In sales, these buildings seem to achieve the price levels generally obtained only by condominium apartments, when the cooperative building's underlying mortgage
is factored in.
In part, the difference may be explained by the allocable portion of the underlying mortgage
associated with the cooperative unit.