BROOKLYN, N.Y. – Marcus & Millichap Capital Corporation (MMCC) has refinanced a 52-unit affordable housing project in Brooklyn for $7.3 million.
Anita Pins (top right photo), an associate director with a strong affordable housing background in MMCC’s Manhattan office, addressed the concerns of all parties in the transaction, and with Gerald Kray (middle left photo), a senior director also in the firm’s Manhattan office, identified the right capital source and arranged the financing.
“The project was built with a subsidy from the City of New York and is subject to a 30-year regulatory agreement that survives satisfaction of the city mortgage and restricts the rental of the apartments to tenants of moderate income,” says Pins.
“The ‘blended’ rate of interest for many affordable housing projects that are financed with a combination of private market-rate financing and government subsidy is now higher than current rates, making refinancing an attractive proposition.”
“The consistent demand for multifamily housing in New York City creates a great deal of competition within the lending community for opportunities like this,” adds Kray. “MMCC arranged long-term financing for the transaction with a great deal of flexibility and at an extremely low interest rate.”The loan was structured with a 30-year term and amortized over 30 years with an interest rate of 3.3 percent fixed for five years. The LTV is 70 percent.
The mid-rise apartment building was built in 1998.
Press Contact: Stacey Corso , Marcus & Millichap Capital Corp.
(925) 953-1716
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