New York-based Signature Bank has provided a $54m loan for the acquisition of the Riverview Apartments at 1600 Sedgwick Avenue in the Morris Heights neighborhood of the The Bronx, New York City’s northernmost borough.
The ten-year permanent loan will bear an interest rate of 3.37 percent for the first five years and then the pricing will be adjusted to a rate higher than 3.37 percent or 275 basis points above the yield of the five-year US treasury note, sources said.
The new owners, Riverview Redevelopment Company, bought the property from Starrett Corporation.
Located in the West Bronx, the property consists of a 25-story building with 383 apartment units, 2,044 sq ft of commercial space and a 125-car parking garage. Of the 383 units, 315 are rent controlled.
As of end of last year, Signature Bank had almost half of its $18.4bn loan portfolio invested in mortgages for multifamily residential properties, many of which were in New York, according to reports.
The bank’s loans and deposits both grew by more than 32% in 2014, compared with an industry average in the 4% range. As of July end, the bank had more than $20bn in assets and has recorded an earnings increase for 23 straight quarters. The bank’s stock price has gone up more than fivefold in the last decade — from 26.23 in 2005 to 134.82 as of 8 Sept.