The Community Preservation Corporation (CPC) announced the closing of a $100 million portfolio under the Freddie Mac Small Balance Loan (SBL) product.
The loans were used for the refinancing of 28 small, multifamily buildings spanning Washington Heights, East Harlem, and Brooklyn. The borrower was not named.
The terms and rates of the SBL financing will help to keep the properties, which are largely home to working-class New Yorkers, in solid financial standing for the long-term, said CPC in a press release.
The 28-building portfolio contains 694 total residential units, the majority being rent stabilized or rent controlled. Approximately 86 percent of the apartments have rents affordable to moderate-income households earning at or below 100 percent of the area median income.
“In every borough in New York, small multifamily buildings are the backbone of communities. That’s why it’s particularly important for us to have a flexible product that allows our customers to meet the capital needs of their small buildings,” said Rafael E. Cestero, President and CEO of CPC.
“The Freddie Mac Small Balance Loan gives us that tool, and put us in a position to help our borrower refinance 28 properties, and ensure the long-term stability of a portfolio that serves as an important piece of the community’s housing stock.”
“This financing will provide hundreds of New Yorkers with access to safe and affordable housing in one of the largest and most densely populated cities in the world,” said Stephen Johnson, vice president, Small Balance Lending, Freddie Mac Multifamily.
“This transaction is one of the largest single-sponsor portfolios we’ve financed using our Small Balance Loan product, and is the latest example of the impact it can have in urban centers, where the affordable housing crisis affects countless families.”
“When you’re bringing 28 loans to closing, there can be a lot of moving pieces. The hands-on support from Freddie Mac to both CPC and our borrower was invaluable to ensuring a smooth deal-flow, as well as securing favorable and competitive portfolio terms,” said Matthew Nelson, Vice President & Manager of Agency Loan Production at CPC.
“Smaller buildings are a huge piece of the New York market, and we’re seeing a lot of buzz around the Small Balance Loan product from owners looking for the flexibility they’re not finding with your average lending options.”
The closing of the 28-building New York City portfolio brings CPC’s SBL lending to $267 million in 2018.