Recent News
Posted: December 17th, 2009NJ & Company
ATLANTIC CITY-- The Community Preservation Corporation (CPC), a non-profit affordable housing lender, closed on a $2.627 million Freddie Mac permanent loan to acquire and refinance Magellan Manor Apartments in Atlantic City.
Located on Sewell Avenue in the Marina District, the development is fully occupied and consists of ten buildings, containing 77 Section 8 low-income rental units designated for working families.
This loan was originated pursuant to Freddie’s Floating-Rate Capped ARM Program and has a very favorable prepayment feature which permits up to 100% prepayment subject to a minimal fee. Issues related to potential difficulties with the buildings’ expiring Section 8 agreement were resolved in a creative collaboration with the U.S. Department of Housing & Urban Development (HUD), CPC, the borrower and Freddie Mac in underwriting and closing the transaction.
The Marina District is classified as low-income with the estimated median income for 2008 at $25,774 with 41% of the population below the poverty level. Magellan Manor Apartments is a fully occupied residential complex comprised of ten buildings with a total of 77 rental units, consisting of 16 one-bedroom, 40 two-bedroom, and 21 three-bedroom units in generally good condition.
The borrower is an entity who purchases existing properties to renovate and maintain as growing assets. In addition to New Jersey, the borrower also owns properties in Pittsburgh, PA and Baltimore, MD.
The Community Preservation Corporation is a not-for-profit mortgage lender that finances residential multifamily development throughout New York, New Jersey and Connecticut. Since its founding in 1974, CPC has invested more than $7 billion in nearly 136,000 units of housing.
Community Preservation Corporation
www.communityp.org
Atlantic City Section 8 Multifamily Complex Receives $2.627 Million Freddie Mac Loan from CPC
NJ & Company
December 17, 2009
ATLANTIC CITY-- The Community Preservation Corporation (CPC), a non-profit affordable housing lender, closed on a $2.627 million Freddie Mac permanent loan to acquire and refinance Magellan Manor Apartments in Atlantic City.
Located on Sewell Avenue in the Marina District, the development is fully occupied and consists of ten buildings, containing 77 Section 8 low-income rental units designated for working families.
This loan was originated pursuant to Freddie’s Floating-Rate Capped ARM Program and has a very favorable prepayment feature which permits up to 100% prepayment subject to a minimal fee. Issues related to potential difficulties with the buildings’ expiring Section 8 agreement were resolved in a creative collaboration with the U.S. Department of Housing & Urban Development (HUD), CPC, the borrower and Freddie Mac in underwriting and closing the transaction.
The Marina District is classified as low-income with the estimated median income for 2008 at $25,774 with 41% of the population below the poverty level. Magellan Manor Apartments is a fully occupied residential complex comprised of ten buildings with a total of 77 rental units, consisting of 16 one-bedroom, 40 two-bedroom, and 21 three-bedroom units in generally good condition.
The borrower is an entity who purchases existing properties to renovate and maintain as growing assets. In addition to New Jersey, the borrower also owns properties in Pittsburgh, PA and Baltimore, MD.
The Community Preservation Corporation is a not-for-profit mortgage lender that finances residential multifamily development throughout New York, New Jersey and Connecticut. Since its founding in 1974, CPC has invested more than $7 billion in nearly 136,000 units of housing.
Community Preservation Corporation
www.communityp.org
