November 12, 2015
By Keith Loria
The Community Preservation Corporation Inc., has closed its first eight loans under the Freddie Mac Small Balance Loan Program, totaling $23.7 million in support of 275 rental units in small buildings in New York City, Yonkers, Syracuse and Troy.
The SBL program provides mortgages ranging from $1 million to $5 million for the acquisition or refinancing of small multifamily properties with five or more units, and these loans are CPC’s first since being named one of the approved seller services earlier this year.
“Small multifamily buildings are home to millions of hardworking New Yorkers and are a critical piece of the State’s housing stock. However, when it’s time to refinance or find the capital to make repairs and upgrades many owners discover that there’s a significant shortage of products built to fit their unique needs,” Rafael E. Cestero, CPC’s president & CEO, said. “The SBL program addresses this acute gap in the market and offers owners the financing solutions they need to keep their properties in good repair and sustainable over the long-term.”
The properties involved were: the three-story, 19-unit rental building 93 William St., Yonkers, which received a $3.225 million permanent loan; 121 East Clark Place, a six-story, 48-unit low-income affordable rental building in the Bronx, which received $2.75 million; 160 West 142nd St., Manhattan, a six-story, 22-unit moderate-income, mixed-use building, which received $2.235 million; 29 Meserole St., a four-story, eight-unit, building in Brooklyn, which received $2.12 million; 119 East 96th St., a six-story, 23-unit mixed use property in Manhattan, which received $5.5 million; 2012 Bedford Ave. & 344 Parkside Ave, a three-story 10-unit residential property in Brooklyn, which received $2.15 million; 7651 Morgan Road, a garden-style community made up of 11 buildings each having 10 units in Liverpool, which received $3.8 million; and 212 Third St., a four-story, 34-unit residential property in Troy, which received $1.9 million.
“We are excited that our Small Balance Loan initiative is quickly gaining momentum in the marketplace and providing a strong financing option,” Stephen Johnson, Freddie Mac’s senior director of multifamily, said. “We look forward to working with The Community Preservation Corporation to close more small balance loans and bring long-term debt capital to this market segment.”
Looking ahead, CPC has a robust pipeline of approximately 13 additional SBL loans totaling more than $28 million that are expected to close in the last quarter of this calendar year.