CPC Delivers $2.75 Million for Acquisition of Two Apartment Buildings in Pittsburgh Area

Freddie Mac SBL Product Fills Unique Financing Needs of Small Multifamily Buildings

The Community Preservation Corporation (CPC), a leading nonprofit affordable housing and community revitalization finance company, recently announced the closing of two permanent loans under the Freddie Mac Small Balance Loan (SBL) Program. The loans, totaling $2.75 million were used for the acquisition of two small multifamily buildings in the communities of McKees Rocks and Glenshaw just minutes outside of downtown Pittsburgh, Pennsylvania.

CPC delivered a $1.57 million permanent loan for the Wilson School Apartments, a 2-story, 40-unit residential building at 136-140 Catherine Street in McKees Rocks. The property was originally constructed as a school in 1930 and converted to apartments in 1980. CPC also closed a $1.18 million permanent loan with the same borrower for the Royal Arms Apartments, a 5-story, 24-unit walkup at 1415 Mount Royal Boulevard in Glenshaw.

The Wilson School Apartments secured a rate of 4.18 percent and the Royal Arms Apartments secured a rate of 4.28 percent. Both loans are structured as 10-year fixed-rate terms with three years of interest only payments and 30-year amortization.

“Whether you’re in downtown or the suburbs, small residential buildings play a critical role in the housing stock of the community. Unfortunately, there haven’t been many products tailored specifically to their needs when it comes to refinancing or acquisition.” said Dick Conley, Senior Vice President & Director of Originations at CPC. “Freddie Mac’s SBL gives us a product that’s built for small buildings and offers smart and flexible terms that owners and lenders can work with.”

“We are very pleased with the outcome of this CPC project, which will provide much needed housing that is affordable for low-income and working families in the Pittsburgh area,” said David B. Cardwell, Senior Director, SBL Production and Sales for Freddie Mac Multifamily. “These acquisitions are great examples of the flexibility our Small Balance Loan Program provides, which helps lenders tackle complicated transactions and gives borrowers more choices, better terms, and a more efficient process that helps meet their needs.”

CPC is focused on its core mission of addressing the gap in the market for flexible lending products for small multifamily buildings—a segment of the housing stock that plays a critical role in providing housing for low- and moderate-income families. Freddie Mac’s SBL program is designed to address the need for cost-effective financing solutions for the acquisition and refinancing of small buildings and offers a streamlined process for permanent loans between $1 million and $6 million in most markets.

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 vouchers, senior housing without 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. 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.

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. To date the company has leveraged approximately $9.7 billion in private and public investment to finance more than 170,660 units of 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 FacebookTwitter  and LinkedIn.