M&T Realty Capital Corp., the commercial mortgage banking subsidiary of M&T Bank, recently closed a $34 million Freddie Mac loan to refinance a 256-unit co-op building at 250 Mercer Street in NoHo, a spokesperson for the bank told Mortgage Observer. The borrower is listed in public records as Mercer Square Owners Corp.
Proceeds from the ten-year loan will go to capital improvements on the 16-story pre-war building and allow the shareholders to lock into a low fixed interest rate, according to the lender.
In addition to the Freddie Mac loan, M&T Bank’s New York commercial real estate office also provided a $2.5 million line of credit for working capital on the building.
The property at 250 Mercer Street, located between Third and Fourth Streets, is one of the larger co-op buildings in the NoHo/Greenwich Village area with 256 residential units and additional retail space.
The building was constructed as a commercial property in 1888 and then converted to a loft rental property in 1979, city records show. The building was later converted to co-ops in April 1986.
“The board is very reasonable, allowing pets, guarantors, and pied-a-terres,” according to StreetEasy.
M&T Realty Capital, under Freddie Mac’s Program Plus network, originates and services loans for apartment properties, including market-rate rental buildings, student housing, co-ops and affordable housing projects.