John Catsimatidis refinances Coney Island apartment towers
John Catsimatidis has refinanced his new glass buildings that overlook Coney Island.
The CEO of billionaire Red Apple Group has secured a $153 million loan from Bank of America and Santander Bank for his twin-tower development, known as Ocean Drive, at 3514 Surf Avenue.
Catismatidis says The real deal that with rising interest rates, he opted for a short-term loan rather than being locked in for the next 10 years.
“We think interest rates will come down from where they are now,” he said.
The new financing replaces a $130 million construction loan that Bank of America and Santander Bank provided to the project. Red Apple Group began construction on the 22-story, 450-unit mixed-use beachfront project in 2018, and Catsimatidis said it is now about 98% leased.
In addition to repaying the construction loan, the refinancing allowed Red Apple to withdraw the proceeds.
This is a particularly difficult time for borrowers to obtain financing, as interest rates have risen dramatically in recent weeks. The volatile environment led to the failure of many financing transactions.
Catsimatidis said he would like to build three more towers on Coney Island, but would take his business to Florida if the city did not approve of his plans.