Freddie Mac Targeted Affordable Housing loan finances preservation of affordable property in Coney Island
CPC Mortgage Company, a subsidiary of The Community Preservation Corporation (CPC), and Ocean Towers Partners LLC, a joint venture between Proto Property Services, LLC and the Community Development Trust (CDT), announced the closing of a $48 million Freddie Mac Targeted Affordable Housing (TAH) loan to refinance a 360-unit property in the Coney Island neighborhood of Brooklyn. Over the last seven years, Proto Property Services and CDT have worked to significantly renovate and upgrade the property. The TAH financing from CPC Mortgage Company allows the partnership to continue their mission of providing quality, affordable housing for the tenants of Ocean Towers.
“Ocean Towers is an amazing property that has served as a key resource of affordable housing for the Coney Island community since the 1970s. Ensuring our borrowers had the right financing means that they can ensure their tenants will be able to live in safe, stable, affordable homes,” said John Cannon, President of CPC Mortgage Company LLC. “Freddie Mac’s Targeted Affordable Housing product was made for deals like this, and our close relationship with their team allowed us to get the best possible outcome for our borrowers.”
“Because they often use multiple forms of subsidy, tax abatements, and other financing, it can be challenging to refinance a large affordable project like Ocean Towers” said Danny Wheeler, Vice President and Mortgage Officer at CPC who originated the loan. “As a mission-driven lender, we’ve been focused on financing affordable and workforce housing for nearly 50 years. We’re proud to partner with Proto and CDT to help them continue their work of providing quality affordable housing for their tenants.”
“Freddie Mac is proud to work with lenders like CPC to provide financing for properties like Ocean Towers which ensure there are safe and affordable housing options in the communities like Coney Island,” said Curtis Melvin, director of Multifamily Production at Freddie Mac. “We are committed to supporting this important part of the multifamily market through our mission-driven Targeted Affordable Housing programs.”
“CDT is very pleased to continue building on what has been a great partnership with Proto and CPC. The rehabilitation work that was originally completed by Proto at Ocean Towers was critical to stabilizing the property as long-term, high quality affordable housing. This refinancing will help ensure that Ocean Towers remains well capitalized into the future and also help CDT continue our mission making high-impact, double bottom line investments throughout the country. We enjoy working with lenders like CPC that share our mission of preserving affordable housing,” said Brian Dowling, Chief Investment Officer at CDT.
Located at 2960 West 24th Street, the 19-story building sits on 3.5 acres, and its 360 rental units are comprised of a mix ranging from studio to five-bedroom layouts. The property is presently more than 98 percent occupied, and roughly 91 percent of the units receive Section 8 vouchers.
The property was built in 1974 through the Mitchell-Lama Rental Program, which was created to provide affordable rental housing for low- and moderate-income households in New York. Ocean Towers exited the Mitchell-Lama program in 2006. However, Proto Property Services and CDT purchased the property in 2013, shortly after Hurricane Sandy, in a transaction utilizing subsidy from the NYC Department of Housing Preservation and Development (HPD), funding from the NYC City Council, and $36 million in permanent financing from CPC. This helped to ensure the long-term affordability of Ocean Towers with a new regulatory agreement from HPD. The partners also completed a $10 million rehabilitation, which included a number of resiliency upgrades to aid the property in withstanding future severe weather events.
CPC Mortgage Company offers financing for the acquisition, refinance, rehabilitation, and construction of multifamily property through a full suite of Freddie Mac, Fannie Mae, and Federal Housing Administration (FHA) products. The company’s expertise across the industry allows them to provide unparalleled technical assistance and deal execution to their borrowers.
As a Freddie Mac Optigo lender, CPC Mortgage Company offers a range of competitively priced, reliable mortgage products for the acquisition and refinance of multifamily properties. Freddie Mac’s Targeted Affordable Housing (TAH) loans are available to preserve affordable rental housing in underserved communities. Eligible properties are affordable to tenants with low and very-low incomes and may include Section 8 financing, Section 236 financing, tax abatements, or other affordability components. CPC Mortgage Company is able to provide cash loans, bond credit enhancements, tax-exempt loans, and other options.
About CPC Mortgage Company LLC
CPC Mortgage Company LLC is a full-service Agency lender offering a suite of Freddie Mac, Fannie Mae, and Federal Housing Administration (FHA) products. Our scope includes conventional, affordable, and small balance lending for the acquisition, refinance, rehabilitation and construction of multifamily housing. CPC Mortgage Company LLC is a subsidiary of The Community Preservation Corporation (CPC), an S&P AA- rated, nonprofit multifamily finance company founded in 1974. Revenue generated by CPC Mortgage Company LLC supports the mission of CPC, allowing it to have a greater impact with its investments in housing and community development. Visit us at communityp.com/mortgagecompany
About the Community Development Trust (CDT)
The Community Development Trust (“CDT”) is a national investor that provides long-term capital for the preservation and creation of affordable housing and charter school facilities. Working with local, regional and national partners, CDT makes long-term equity investments and originates and acquires long-term mortgages. In its 21 years, CDT has invested over $1.9 billion in debt and equity capital for properties in 44 states and regions — helping to preserve and create over 49,000 units of affordable housing that have provided homes for more than 125,000 residents. CDT is a private real estate investment trust (REIT), a certified Community Development Financial Institution (CDFI), an approved Fannie Mae affordable housing lender, and a member of the Federal Home Loan Bank of New York (FHLBNY).