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 Coney Island.
Over the last seven years, Proto Property Services and CDT have worked to renovate and upgrade the property known as Ocean Towers. The TAH financing from CPC Mortgage Company allows the partnership to continue their work.
“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.”
Located at 2960 West 24th Street, the 19-story building sits on 3.5 acres, and its 360 rental units are comprised of 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.
It 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 bought it 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.