GRACIE GARDENS

Gracie Gardens, a charming 4-building, 272-unit cooperative apartment community, struggled with a myriad of financial difficulties less than a decade ago (a sponsor default resulted in a number of units being sold at auction in 1991). Our excellent relationship with financial institutions enabled us to refinance an $11.2 million mortgage. The package provided the building with $3.2 million in additional capital, substantially lowered the interest rate to 6.589 percent from 8.625 percent, reduced the annual mortgage payments by $60,000 and cut the prepayment penalty to $46,000 from $200,000.

Currently a $2 million façade restoration and roof replacement project has just been completed, and a half-million dollar refurbishing of all lobbies and hallways will soon begin. Simultaneously, we have thoroughly overhauled all aspects of the building's operations resulting in a significant reduction in operating expenses while dramatically improving building maintenance and services.

As a result, the six-story, four-building doorman complex at 515 and 525 East 89th Street and 520 and 530 East 90th Street, is one of the hottest selling co-ops on the Upper East Side. In 1999 Gracie had over 40 sales, and a quarter of them have been combination purchases (when an owner combines two or more units). Gracie Gardens has become a hotbed for co-op buyers looking for large multi-bedroom units at attractive prices.