New Jersey Business Journal
By Mario Marroquin
August 3, 2017
The Community Preservation Corp. recently announced it closed two permanent loans under the Freddie Mac Small Balance Loan program. The firm said the loans were used to acquire two multifamily buildings on Madison Street, Hoboken.
“Small buildings are the backbone of our communities, but there’s a gap in the market for products that speak to their unique needs,” CPC Senior Vice President and Director of Originations Dick Conley said. “Freddie Mac’s SBL gives us a product that’s built for small buildings, and offers smart and flexible terms tailored to acquisition and refinancing. We’ve definitely seen the SBL gaining momentum in the marketplace and expect that to continue as more owners learn about it.”
CPC delivered a $1.76 million permanent loan for a six-unit multifamily building located at 301 Madison St. A $2.69 million permanent loan was delivered for the 10-unit multifamily property at 308 Madison St. Both loans are structured as 10-year fixed-rate terms with three years of interest-only payments and 30-year amortization at a 4.4 percent rate.
SBL product, according to the firm, is used for the acquisition and refinancing of properties with five or more units that may have a tax abatement and Section 8 vouchers, senior housing 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.
“CPC is dedicated to bringing stable permanent lending capital to multifamily projects in underserved and growing communities throughout the Mid-Atlantic region,” CPC said in a news release. “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.”