Freddie Mac Small Balance Loan Product Fills Unique Acquisition & Refinancing Needs of 114 Units in Small Multifamily Buildings in Paterson, Palisades Park, and East Orange
NEW YORK, NY, August 27, 2018 – The Community Preservation Corporation (CPC), a leading nonprofit affordable housing and community revitalization finance company, announced the closing of three permanent mortgages under the Freddie Mac Small Balance Loan (SBL) product. Totaling $12 million, these loans were used for the acquisition and refinancing of four multifamily buildings in northern New Jersey.
- CPC delivered a $5.3 million permanent loan for the acquisition of the 36-unit residential building at 61 Park Avenue in Paterson, New Jersey.
- CPC delivered a $4.7 million permanent loan for the 35-unit building at 475 Grand Avenue in Palisades Park, New Jersey.
- CPC delivered a $2 million permanent loan to refinance a total of 43 units at 373 and 398 Park Avenue in East Orange, New Jersey.
“Over our more than 40 years of community lending, CPC has been committed to providing products that serve a diverse range of capital needs for multifamily owners and purchasers of all sizes. Whether it’s for acquisition, refi, or rehab – Freddie Mac’s suite of products allow us to provide flexibility and terms that make sense for our borrowers,” said Richard Conley, Senior Vice President and Originations Director at CPC.
CPC provides borrowers with a suite of Freddie Mac and Federal Housing Administration (FHA) products. From originations to underwriting and facilitating the deal flow through closing, CPC’s team is dedicated to facilitating the Agency lending process. The company has leveraged its more than four decades of community revitalization experience and strategic relationships with their government partners to provide a suite of loan products uniquely tailored to fit the needs of building owners, large and small.
In Fiscal Year 2018 ending on June 30th, CPC originated approximately $495 million through its Agency lending business in New York, New Jersey, Pennsylvania, and Massachusetts.
As a long-time Freddie Mac Seller/Servicer, CPC offers a range of competitively priced, reliable mortgage products for the acquisition and refinancing 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 Small Balance Loan (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 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.