About one-third of rental housing in the U.S. is contained in buildings with 5 to 49 units. Buildings in this category are often referred to as small buildings, and they play a big part in the housing puzzle. Often privately owned, this housing stock tends to be older and typically provides an anchor for neighborhoods by meeting the affordability needs of low-, moderate-, and middle-income families. Unfortunately, owners of small buildings tend to operate on thin margins, and as the buildings age, maintenance costs compound, making access to capital sources a paramount issue.
Did you know…CPC has partnered with New York State Homes & Community Renewal (HCR) since 1992, and in Fiscal Year 2017 alone, created or preserved 584 rental units.
At CPC, we provide innovative capital solutions to address the complex needs of owners and developers of multifamily properties. We utilize our deep, strategic relationships to offer the financial resources necessary to keep properties financially and physically sound. Staying true to this mission-driven approach to lending, in our 2017 Fiscal Year we expanded our toolbox of permanent lending products to help meet the unique needs of small building owners and developers. Highlights of this include:
As part of CPC’s commitment to revitalizing the Capital Region’s small building housing stock, four dilapidated buildings in a neglected section that connects Albany’s downtown and its bustling warehouse district are about to be historically restored to create 15 units of stable housing. Once completed, the buildings will offer one- and two-bedroom apartments affordable to the local community, as well as approximately 900 square feet of off-street parking in two adjacent lots.
The gut-rehabilitation of 800-804 Broadway—the first renewal project on its block—will serve as a catalyst for the ongoing revitalization of “New Broadway,” which is part of the larger Arbor Hill neighborhood. The City of Albany has identified Arbor Hill as a key focus area and has already dedicated $75 million toward its renewal.
56 Sheridan Avenue56 Sheridan Avenue Albany, New York
Walier Lofts755 North Salina Street Syracuse, New York
Responsible, long-term ownership of multifamily buildings in underserved or changing neighborhoods can help preserve housing affordability, reduce displacement, and serve as a force for stabilizing and revitalizing the community. Whether acting as a lender or an equity partner, CPC provides capital to promote long-term ownership that delivers on these benefits.
As a lender, we provide Long-Term Fixed-Rate mortgages that give our borrowers the capital they require to ensure that long-term maintenance and operations needs can be addressed and that the financial stability of a property is safeguarded. As an owner, we invest capital through our equity investing platform, giving us a seat at the table to act as ambassadors of affordability and advocates for well-maintained infrastructure.
Did you know…CPC has partnered with SONYMA to provide mortgage insurance for our loans since the early 80s.
CPC’s investment in preserving the Parkchester complex in the Bronx is our flagship example of how long-term, mission-driven investments in multifamily housing can be a catalyst for stability and provide a haven of affordability for communities. With our ownership partners in the 12,271-unit complex, we have been able to leverage our investment and experience to ensure the long-term physical and financial well-being of this naturally affordable community.
Modeled on the idea that long-term ownership helps create community stability and affordability, CPC’s equity investing platform enables us to invest alongside like-minded partners in multifamily housing to ensure that the positive impact of long-term ownership is realized. In our 2017 Fiscal Year, we closed the first three equity deals in our pipeline, totaling $5.8 million. This investment spanned the state of New York, with two projects in Brooklyn for a combined 631 units, and 72 new units at Charlotte Square in Rochester.
These investments enabled us to deploy capital and acquire ownership stakes in affordable multifamily properties located in high-opportunity areas and transform them into vibrant developments for working individuals and families.
The first project in our new equity investing platform, Charlotte Square exemplifies our commitment to investing alongside like-minded partners in multifamily housing to ensure the positive social benefits of long-term stable ownership. Since 1993, CPC has provided more than $90 million in lending capital to finance 55 multifamily buildings in Rochester. CPC’s new equity platform gives us another tool to diversify how we invest in the long-term stability of communities. By using our capital to finance Charlotte Square, we were able to advance our commitment to responsible ownership and create deeper impact in the community by supporting the economic development goals set by the City of Rochester to develop the Inner Loop.
Serving as an anchor to the East End community, Charlotte Square Phase 1 brought 72 newly constructed rental apartments to downtown Rochester. With our partners, Home Leasing, the project won an RFP from the City of Rochester in 2015 to develop longtime vacant land known as the Inner Loop. This transformational, multiphase project is converting a sunken expressway to the east of Downtown into a thriving, walkable community. The project is one of two LEED Gold–certified multifamily buildings in the Greater Rochester Area.
Rolling Ridge Apartments9 Denise Drive Latham, New York
The Lofts on Main is a unique and affordable artist community in the heart of Peekskill’s Artist District, an area that has become a regional arts and entertainment destination. Scheduled for completion in January 2018, the three-story, mixed-use building calls for 50 below-market (60% AMI) loft-style apartments for artists and 24 market-rate units for non-artists, as well as ground floor retail space, a rooftop courtyard, fitness room, laundry facilities, and gallery and performance space.
This project showcases CPC’s unique ability to proactively pool funding sources from local, state, and federal levels in order to ensure the deep affordability needed to create housing that is in line with the development goals of the communities we serve. The $15.5 million construction loan includes Community Development funds from the City of Peekskill (CHEIR funds), Middle Income Program (MIP) funds, a New York State Energy Research and Development Authority (NYSERDA) grant, and Brownfields Tax Credits, as well as an $8.5 million participation from Putnam County Savings Bank and Low Income Housing Tax Credits (LIHTC). This was accompanied by a permanent loan provided by CPC through its partnership with Wespath Benefits and Investments’ Positive Social Purpose Lending Program (PSP). It is the fourth project CPC has financed in Peekskill’s burgeoning arts district and an example of how CPC partners with communities to meet unique housing needs.
Did you know…In Fiscal Year 2017, Wespath Benefits and Investments provided permanent financing for 119 units of low-income housing.
Antioch Homes175, 165 and 147 Railroad Avenue Bedford Hills, New York
569 Prospect Avenue569-575 Prospect Avenue Bronx, New York
Habitat for Humanity, SEED408 Thomas Boyland Street Brooklyn, New York
Once sites of economic prosperity, many old factories and other industrial buildings in Upstate New York have fallen into disrepair and neglect. CPC is proud to have a proven track record of working with public and private partners to support the revitalization and economic development goals of local municipalities. Through this collaboration, we work with our borrowers to transform these blighted buildings into housing and commercial space that serve as an anchor to revive downtown centers.
A beautiful example of CPC’s long-standing commitment to the reuse of these historic buildings is the nearly $28 million adaptive redevelopment of the R.E. Dietz lantern factory in Syracuse’s up-and-coming Park Avenue neighborhood. CPC and its lending partners, Pathfinder Bank and NBT Bank, provided the construction loan to transform this largely vacant, historic building into 92 new apartments, 37,500 square feet of commercial space, and 106 enclosed parking spaces. The apartments, which have an industrial feel, feature large windows, high ceilings, brick walls, and exposed wooden beams and support posts as a reminder of the building’s historic past.
Did you know…Over our 26-year relationship, CPC has leveraged $784.6 million of CRF dollars across 484 projects to finance 19,267 housing units.
Located across the street from Leavenworth Park, “The Dietz” extends a growing trend in Syracuse toward the redevelopment of former industrial buildings into mixed-use facilities that revitalize the area by connecting the Syracuse Lakefront, Near Westside’s SALT district, and the Syracuse central business district.
Oak School Lofts266 Oak Street Buffalo, New York
The Lincoln Alliance Building183 East Main Street Rochester, New York
Alexandre Apartments510 Washington Street Buffalo, New York
The Millennia Building22 Burling Lane New Rochelle, New York
This year, CPC memorialized our green underwriting methodology through the creation of Underwriting Efficiency: A Mortgage Lender’s Handbook for Realizing Energy and Water Efficiency Opportunities in Multifamily Housing.
The handbook, which was developed in collaboration with private and public partners, is quickly becoming the go-to resource for lenders on the tangible benefits of efficiency measures, how to discuss the topic with owners, and steps for incorporating the savings into the underwriting process.
Our innovative financing strategy allows borrowers to take on additional debt to pay for energy-efficiency upgrades by leveraging the forecasted utility savings from those upgrades. Underwriting the potential savings and providing additional low-cost, long-term capital in the mortgage can help break down the financial barriers that building owners of all sizes currently face.
By promoting the inclusion of energy and water retrofit measures into first mortgage financing, CPC is helping to transform the long-term economic stability of multifamily housing from the inside out. Energy- and water-efficiency improvements can save money by reducing annual energy bills by 15%–30% and water bills by 15%–50%. The savings from energy-efficient property improvements can be leveraged to reduce subsidy burden and mitigate the need to increase rents—critical aspects in the preservation of affordability in our communities. At the same time, “greener” buildings also provide non-energy benefits, such as a healthier living environment for residents and the community.
As a mortgage lender, we know it is important to be honest about realities and risks, which is why we are proud of the step-by-step framework outlined in our Handbook. Through the checklists and success stories, other lending institutions can see examples of how to improve efficiency based on financing goals and how to implement an underwriting process that allows for the integration of energy-efficiency savings. The sooner our industry adopts this type of forward thinking, the sooner we can prepare for even more dramatic solutions that are emerging, such as passive house design, zero-energy homes, and renewables.
Once written off as outdated relics of an industrial age, our historic downtowns are experiencing a renaissance as former manufacturing buildings find new life as mixed-use residential buildings. People are experiencing a renewed sense of place in downtown communities, spurred by new housing with retail, entertainment, and other neighborhood amenities only steps away from their apartments.
This type of historic preservation project offers the perfect opportunity to introduce energy-efficiency measures that can provide a host of long-term benefits for owners, residents, and communities.
In the Niagara Street Corridor, an area once characterized by aging warehouses, CPC is investing in projects that are serving as catalysts for this resurgence, like the Mentholatum Building—an 81,700-square-foot former factory that has been transformed into 49 new apartments and new commercial space. Boasting a high-efficiency HVAC system, double-paned window treatments, and other energy-efficiency measures, the savings garnered by these sustainable systems will play a role in the long-term economic stability of the building.
Where others saw a vacant factory, our borrowers saw the potential to help attract new residents and new investment to serve as an anchor to this growing community. At CPC, we understand the commitment it takes to get projects like this off the ground, and we work to help our borrowers achieve their vision.
Big Tree Glen3727 West Main Street Batavia, New York
850 Longwood Avenue850 Longwood Avenue Bronx, New York