LIHC, Rockport Mortgage Team Up for $74M Manhattan Refi

The loan will be used towards capital improvements at a 152-unit affordable building in the Little Italy neighborhood.
Little Italy Restoration Apartments. Image courtesy of Rockport Mortgage Corp. and LIHC Investment Group.

LIHC Investment Group and Rockport Mortgage Corp. have closed a $74 million refinancing of Little Italy Restoration Apartments, a 152-unit multifamily property in Manhattan, through a FHA Section 223(f) loan. LIHC and U.S. Department of Housing and Urban Development also entered into a new 20-year Section 8 contract that will keep the property affordable through the Section 8 program through 2043.

The property at 21 Spring St. has 151 Section 8 units and one non-revenue apartment. Built in 1982, it has 34 one-bedroom units and 118 two-bedroom apartments. The funding will be used to complete capital projects and improve the quality of life for the building’s residents, many of whom are senior citizens.

Improvements will include adding new granite countertops and stainless-steel appliances in the kitchens. Bathroom renovations will include new vanities, medicine cabinets, sinks and faucets, bathtub surrounds and tile flooring. Vinyl plank flooring will be installed throughout apartment kitchens, living rooms and hallways. Common areas will also be repainted and also get new doors and LED lighting upgrades.

Earlier Deals

LIHC and Rockport have worked together in the past, including in January when they teamed up on two HUD Section 223(f) loans totaling $51 million for LIHC to refinance Verona Senior Citizens Apartments in Verona, N.J., and Mansion Apartments in Pine Hill, N.J. LIHC was also able to extend Section 8 contracts for both of those properties by more than 30 years each.

In March, Rockport provided 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., owned by Scott Jaffee’s Metropolitan Realty Group. Rockport recently provided $42.7 million in FHA Section 223(f) financing for a 327-unit affordable senior community in New Bedford, Mass.