Tarter Krinsky & Drogin recently closed a complex underlying mortgage refinancing for a 164-unit Upper East Side co-op with National Cooperative Bank.

The deal was complex because in 2004, in order to avoid problems with the “80/20 Rule” which restricts income from commercial rents, the co-op had formed an affiliated entity to hold the building’s commercial leases. The co-op and the “80/20” entity hold title to the building as tenants in common, which complicated the underwriting requirements for the refinancing.

Steve Troup, a partner in the Cooperative and Condominium Practice, handled the refinancing for our client.