Freddie Mac Conventional Loan Finances Acquisition of Former Hotel Property Converted to Multifamily with 152 Units
The Community Preservation Corporation (CPC), a leading nonprofit affordable housing and community revitalization finance company, closed $11 million in conventional Freddie Mac financing for the acquisition of a 19-building apartment complex located in the Greentree Borough of Allegheny County, near Pittsburgh, Pennsylvania.
Built in 1985 and renovated in 2016, Terrain Apartments consists of 19 improved, two-and-a-half story apartment buildings, as well as a community and leasing building. Located at 700 Mansfield Avenue, the property’s 152-units sit on 8.95 acres of land and provide residents with 219 surface parking spots.
“There’s a real diversity of needs in the multifamily market, and the days of the one-size-fits-all lender just doesn’t work anymore. At CPC we’ve been delivering flexible capital and hands-on technical assistance to multifamily owners and purchasers of all sizes, in all types of neighborhoods. From the suburbs, to historic downtowns, and rural areas, Freddie Mac’s suite of products provides the flexibility and terms that our borrowers are asking for,” said Matthew Nelson, Vice President at CPC.
The borrower also received a 15 bps benefit in pricing by taking advantage of Freddie Mac’s Green Advantage program, which makes it easier for properties to go green and achieve energy and water savings. When borrowers commit to reducing energy or water consumption by at least 25%, they may get better pricing and more funding to implement their efficiency upgrades.
“Green financing of this property is win-win-win – it will lower utility bills for renters, keep borrower costs low and protect the environment,” said Peter Giles, Freddie Mac vice president, production and sales. “Thanks to our strong partnership with The Community Preservation Corporation, the Greater Pittsburgh Area has gained a revitalized property in Terrain Apartments.”
The borrower utilized Freddie Mac’s Green Assessment which showed them how their property could achieve the required water and energy savings, and committed to investing in low-flow showerheads and toilets to achieve a water savings of 27.75%. In addition to the 15 bps benefit, they were reimbursed $3,500 for the costs of the Green Assessment.
CPC is committed to the long term economic and environmental sustainability of our communities. Efficient buildings not only provide a host of long-term benefits for investors, tenants, and the environment, but also cut down on fossil fuel consumption and have smaller carbon footprints.
CPC continues to expand its Agency lending platform, a one-stop-shop that provides borrowers with a team of experts that have deep experience in Freddie Mac and Federal Housing Administration lending products. From originations to underwriting and facilitating the deal flow through closing, CPC provides a team solely dedicated to facilitating the Agency lending process.
As a long-time Freddie Mac Seller/Servicer, CPC offers a range of competitively priced, reliable mortgage products for the acquisition and refinance of multifamily properties. This includes Freddie Mac’s conventional financing with loans ranging from $5 million to $100 million with 5- to 10-year terms, and the Small Balance Loan (SBL) product which helps to close that gap in the market for flexible financing for small buildings by offering loans from $1 million to $7.5 million with flexible terms, prepayment options, competitive low rates, and streamlined pricing, underwriting, closing, and funding process. Though Fiscal Year 2018, CPC has originated more than $436 million in Freddie Mac multifamily loans.
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. The company provides a full suite of capital products through its construction lending, permanent lending, and equity investing platforms. Since inception, CPC has leveraged approximately $10 billion in private and public investment to finance more than 185,000 units of multifamily housing. CPC’s work with its partners has helped revitalize countless neighborhoods and provided quality housing for families, senior citizens, and individuals with disabilities. Visit CPC at communityp.com, and on Facebook, Twitter and LinkedIn.