Penn South, the 15-bulding moderate-income co-op in Chelsea, refinanced its underlying mortgage at the end of last month in a move that the co-op president Robert Silverstein said would save about $2 million per year over the debt service period.
The refinancing involved a $33 million first mortgage with the Federal Mortgage Agency and two loans with the Amalgamated Bank, all at a 4.17 percent interest rate for a 10-year term and a 25-year amortization schedule.
Silverstein said the refinancing, worth a total of $63 million, will yield the co-op about $8 million in additional funds for essential capital improvement projects. The interest rate, which the co-op locked in June, has now risen to more than five percent, he noted. The co-op, with 2,800 apartments and more than 5,000 residents, was appraised for the purposes of the refinancing at $519 million, Silverstein said.
