New York—CPC’s Bronx office and long-time partner NYC Department of Housing Preservation and Development (HPD) recently closed a $4 million construction loan to finance the new construction of a three-story walk-up masonry building with 15 apartments in Bronx’s Wakefield neighborhood.
Wakefield contains mainly lower density housing with one-, two-, and three-family homes lining many of the streets. The site was sold to the borrower through HPD’s Third Party Transfer Program, a program established to help New York City avoid taking tax delinquent properties into city-ownership and management by expediting transfer of ownership to responsible private for-profit or non-profit owners. The subject property originally included a vacant two-family structure, which was recently torn down. Upon completion of the new construction, the property will include one two-room, six three-room, seven four-room, and one five-room apartments.
Construction financing for this project is comprised of $871,000 from CPC, a $1.4 million loan under HPD’s Preservation Participation Loan Program (PLP), which provides low-interest loans to owner/developers for the rehabilitation or construction of housing for low-to-moderate income households, and $1.725M in HPD HOME funds.
The borrower has an extensive record with CPC and has received CPC financing for more than 50 loans over the past 30 years. Focusing mainly on preservation of housing stock financed with public subsidy, to date, the borrower has completed the new construction of 250 units, gut renovation of 66 buildings with 1,097 units, and moderate rehabilitation of 45 occupied buildings containing 1,871 apartments. The borrower also currently manages more than 9,500 apartments in over 300 buildings throughout Upper Manhattan and the Bronx.