Loans Are CPC’s First Two Freddie Mac Small Balance Loan (SBL) Deals in New Jersey
Nonprofit Finance Company Brings 40+ Years of Experience of Community Revitalization Lending to the Garden State
Orange, NJ, February 15, 2017 – The Community Preservation Corporation (CPC), a leading nonprofit affordable housing and community revitalization finance company, announced the closing of its first two loans in New Jersey under the Freddie Mac Small Balance Loan (SBL) Program. The two loans, totaling $3,090,000, will be used by TBG Development to acquire two small multifamily buildings in Orange. Following acquisition, TBG plans to undertake renovations including new bathrooms, kitchens, and upgrades to the lobby and landscaping.
CPC is focused on its core mission of addressing the gap in the market for flexible lending products for small multifamily buildings—a segment of the housing stock that plays a critical role in providing housing for low- and moderate-income families. Freddie Mac’s SBL program is designed to address the need for cost-effective financing solutions for the acquisition and refinancing of small buildings and offers a streamlined process for permanent loans between $1 million and $6 million.
“Small buildings are the backbone of communities throughout the state, often serving as a haven of natural affordability for low- and moderate-income families. Freddie Mac’s SBL provides a smart and flexible loan product that’s tailored for acquiring or refinancing buildings just like these,” said Rafael E. Cestero, President & CEO, CPC. “For more than four decades our borrowers have relied on CPC as a consistent source of flexible capital to finance multifamily properties of all sizes in a diverse range of neighborhoods. We’re excited to be able to bring our unique expertise to new borrowers and new communities like Orange, New Jersey.”
“Freddie Mac Multifamily created the Small Balance Loan to help lenders like The Community Preservation Corporation to expand the availability of affordable housing for America’s renters” said David Cardwell, senior director of multifamily production at Freddie Mac. “We are proud to join with the CPC and work together to meet today’s rapidly growing demand for affordable housing in New Jersey.”
The two properties receiving loans from CPC through the Freddie Mac SBL program are:
- 364 White Street, Orange, NJ: $1,550,000 loan for the acquisition of the 19-unit walkup.
- 372 White Street, Orange, NJ: $1,540,000 loan for the acquisition of the 23-unit walkup.
Many owners of small buildings, or those looking to buy them, find they often lack the access to funding products for acquisition and refinancing that are available to larger developers and property owners. Through the innovative SBL, CPC and Freddie Mac are extending financing and flexible terms that are tailored to the unique needs of small building owners, allowing them to provide for the long-term sustainability of their properties.
CPC is dedicated to bringing stable permanent lending capital to multifamily projects in underserved and growing communities. Whether providing Conventional Financing products or capital to address the needs of small buildings through the SBL program, the decades-long partnership between CPC and Freddie Mac offers borrowers reliable loan products tailored to multifamily developments of all sizes.
The SBL product can be used for the acquisition and refinancing of properties with five or more units and that may have tax abatements and Section 8 vouchers, cooperatives, senior housing without services, Low-Income Housing Tax Credit properties with Land Use Regulatory Agreements, properties with regulatory agreements with government agencies, and properties with space for commercial use.
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About The Community Preservation Corporation (CPC)
Established in 1974, CPC is a nonprofit affordable housing and community revitalization finance company that believes housing is central to transforming underserved neighborhoods into thriving and vibrant communities. We provide innovative capital solutions, fresh thinking and a collaborative approach to the often complex challenges that owners and developers of multifamily housing face. To date, CPC has leveraged approximately $9.7 billion in private and public investment to finance more than 170,660 units of affordable housing. Our work with our partners has helped revitalize countless neighborhoods throughout New York, and provided quality housing for families, senior citizens, and individuals with disabilities. Follow us at communityp.com, and on Facebook, Twitter and LinkedIn.