The Community Preservation Corp. (CPC), a nonprofit affordable housing and community revitalization finance company, has closed an $11 million conventional Freddie Mac acquisition loan for Terrain Apartments in Pittsburgh. According to public records, the former owner purchased the 152-unit property in 2015, for $6.1 million.
The community is located at 700 Mansfield Ave., adjacent to Interstate 376, a nine-minute drive west from downtown Pittsburgh. The property, initially functioning as a hotel, was converted and now features 19 residential buildings of two and a half stories, as well as a community and leasing building. Situated on a roughly nine-acre parcel, Terrain Apartments was constructed in 1985 and renovated in 2016. A total of 219 parking spaces are also available on-site.
Green Advantage Program
Using Freddie Mac’s Green Advantage program, the borrower got a 15 bps pricing benefit. The program is based on the concept that when borrowers commit to energy and water consumption reduction of at least 25 percent, the company may get better pricing and more funding to implement the efficiency upgrades.
In the case of Terrain Apartments, the borrower used Freddie Mac’s Green Assessment to estimate the most efficient saving strategy, committing to invest in low-flow showerheads and toilets, leading to a 27.8 percent water savings. The borrower was also reimbursed $3,500 for the Green Assessment costs.
“Green financing of this property is win-win-win—it will lower utility bills for renters, keep borrower costs low and protect the environment,” said Peter Giles, Freddie Mac vice president, Production and Sales, in prepared remarks. “Thanks to our strong partnership with The Community Preservation Corp., the Greater Pittsburgh Area has gained a revitalized property in Terrain Apartments.”
In January, CPC arranged a $4.5 million construction loan for Speonk Commons, a 66-unit affordable housing community in Long Island, N.Y.
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