Brooklyn Affordable Community Lands $39M Refi

The owner also signed a new Section 8 contract that will keep the 119-unit property affordable for the next 35 years.
Union Street Houses
Union Street Houses

Scott Jaffee of Metropolitan Realty Group has received a $38.6 million FHA Section 223(f) loan for the refinancing of Union Street Houses, a 119-unit affordable community in Brooklyn, N.Y. Rockport Mortgage Corp. provided the HUD fixed-interest financing due to mature in 2055. The owner also signed a new 20-year Mark-Up-To-Market Section 8 contract to preserve the property’s affordability for the next 35 years.

Situated at 1690 Union St. in the Crown Heights neighborhood, the community consists of six four-story buildings developed in phases between 1914 and 1925. The unit mix includes studio, one-, two- and three-bedroom floorplans. Using the loan proceeds, the owner plans to complete capital improvements at the property. Upgrades will focus on unit interiors, but also on hallway and lobby improvements and modernization of three elevators.

The community is close to Downtown Brooklyn, near the shops and restaurants on Utica Avenue. The location is easily accessible through public transportation, having several bus stations and a subway station within walking distance.

Rockport Mortgage recently provided $42.7 million in FHA Section 223(f) financing for a 327-unit affordable senior community in New Bedford, Mass. Almost 98 percent of the units are affordable under a Section 8 HAP contract.