Mortgage Observer

E&M Receives $70M Mortgage for Purchase of Land Under Chelsea Co-op

Jeffries LoanCore has provided a $70 million mortgage to Brooklyn-based E&M Associates to help fund the apartment owner’s acquisition of the land under an 80-unit co-op building at 101 West 23rd Street, public records show.

The land loan has a variable interest rate, according to the loan document.

101 West 23rd Street.

101 West 23rd Street.

The $70 million mortgage covers 74 percent of the $95 million price E&M paid for the Chelsea land. The new owners acquired the land on June 10 from Westchester, N.Y.-based Treber Realty, records show.

The existing co-op building was constructed in 1956 and converted to co-ops in 1982.

It is unclear how the sale of the ground under the co-op will affect owners at 101 West 23rd Street, who will presumably continue to lease land from the new owner. Purchasers in land leased buildings often pay high monthly fees associated with renting the land on which their units are located.

Owners at the six-story co-op building previously expressed concerns to Treber regarding high maintenance costs, according to a 2008 document filed with the city.

A representative from Jeffries LoanCore declined to comment on the transaction. Representatives from E&M and Treber were not immediately available for comment.

Privately held E&M acquires, owns and manages apartments in the New York City area, according to the company’s site.