CPC Mortgage Company Closes $2.44 Million Deal to Refinance Multifamily Property in Buffalo, NY

Freddie Mac Optigo Small Balance Loan Product Fills Unique Financing Needs of 22-Unit Property in Buffalo, NY

CPC Mortgage Company LLC, a subsidiary of The Community Preservation Corporation (CPC), announced the closing of a $2.44 million Freddie Mac Optigo Small Balance Loan (SBL) to refinance the Houk Lofts, a 22-unit multifamily property at 316 Grote Street in Buffalo, New York.

“Owners of small multifamily buildings have a unique set of needs and challenges when it comes to finding right-sized financing products. At CPC Mortgage Company, we’ve built our foundation on bringing products and first-class technical assistance to the small building market,” said Mike DeWitt, Vice President & Mortgage Officer at CPC Mortgage Company LLC. “Freddie Mac’s Small Balance Loan product gives our borrowers the flexibility and terms they’re looking for, and an expedited process that they can depend on.”

“This is a unique and historic property, and we’re proud to have worked with CPC to provide financing,” said Lamar Myers of Freddie Mac’s Small Balance Lending team. “Our Small Balance Loan product serves a critical segment of the multifamily market. We’re working to deliver financing options to places like Buffalo—where there is an ample supply of smaller apartment buildings, and a need for more choices, better terms and a faster, simpler loan process.”

Houk Lofts was originally built in 1910 as a manufacturing facility for the automobile industry, and was owned by Houk Manufacturing Company from 1915 until the end of the Great Depression. The building was vacant for 15 years before being purchased by the current owner in 2013, and reconfigured into 22 residential units and approximately 1,900 square feet of commercial space. The property was placed on the National Registry of Historic Places in 2014.

CPC Mortgage Company LLC offers a suite of Freddie Mac, Fannie Mae, and Federal Housing Administration (FHA) products for acquisition, refinance, rehabilitation and construction of multifamily properties. The company’s team of experts have deep experience in all aspects of the Agency business to ensure that borrowers receive unmatched technical assistance and deal execution. While offering products for a broad range of capital needs including flexible bridge loans, with strong ties to the parent company and its mission, CPC Mortgage Company LLC has unique institutional expertise in affordable, stabilized housing and small buildings/small balance loans.

In Fiscal Year 2018, the Agency team operated under the CPC umbrella, originating nearly $500 million over a portfolio of 154 loans in New York, New Jersey, Pennsylvania, and Massachusetts.

As a Freddie Mac Optigo lender, CPC Mortgage Company LLC 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 SBL product which helps to close the 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 a streamlined pricing, underwriting, closing, and funding process.

The SBL product can be used for the acquisition and refinancing of properties with five or more units that may have tax abatements and Section 8 housing choice vouchers, senior housing without services, extended-use agreements for properties that are no longer in the investor compliance period for Low-Income Housing Tax Credit, and properties with space for commercial use.

For more information on the Freddie Mac SBL and CPC Mortgage Company’s full suite of products, contact Mike DeWitt at mdewitt@communityp.com or 716-853-0266.

About CPC Mortgage Company LLC

CPC Mortgage Company LLC is a full-service Agency lender offering a suite of Freddie Mac, Fannie Mae, and Federal Housing Administration (FHA) products. Our scope includes conventional, affordable, and small balance lending for the acquisition, refinance, rehabilitation and construction of multifamily housing. CPC Mortgage Company LLC is a subsidiary of The Community Preservation Corporation (CPC), a nonprofit multifamily finance company founded in 1974. Revenue generated by CPC Mortgage Company LLC supports the mission of CPC, allowing it to have a greater impact with its investments in housing and community development. Visit us at communityp.com/mortgagecompany

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