Rockport Mortgage Corporation has closed an FHA Section 223(f) refinancing loan of $38.6 million for Union Street Houses in Brooklyn.
The property is owned by Scott Jaffee, managing member of Metropolitan Realty Group.
Situated in Crown Heights, the property consists of 119 units within six buildings constructed between 1914 and 1925.
Funding will be used to complete capital improvements to enhance the marketability of the property and improve the quality of life for the residents.
Units will be updated with new bathrooms and a select number of units will receive new vinyl plank flooring.
In addition, the buildings will receive updated hallway and lobby improvements including new mailboxes, a new boiler and modernization of three elevators.
As part of the refinancing, the owner entered into a new 20-year Mark-Up-To-Market Section 8 Contract at loan closing, extending their existing 15-year Section Contract commitment to ensure Union Street Houses remains affordable for the next 35 years through 2055.
“The 223(f) loan program was the perfect execution for my property. It allowed me to refinance my current mortgage at a very low interest rate for 35 years”, said Scott Jaffee.
“In addition, it afforded me the ability to take additional cash to make necessary capital improvements. Working with Dan Lyons and his team at Rockport made the execution and closing of this complicated transaction as seamless and quick as possible.”
Dan Lyons, managing partner of Rockport, made the announcement.