According to a CPC statement, the unnamed borrower is "an entity that purchases existing properties to renovate and maintain as growing assets." In addition to New Jersey, the borrower also owns properties in Pittsburgh, PA and Baltimore, MD.
Located on Sewell Avenue in the Marina District, the 10-building development is fully occupied and contains 77 one-, two- and three-bedroom Section 8 low-income rental units designated for working families. This district is classified as low-income, with an estimated median income for 2008 of $25,774.
This loan was originated pursuant to Freddie's Floating-Rate Capped ARM Program and has a prepayment feature that permits up to 100% prepayment subject to a minimal fee. Issues related to potential difficulties with the buildings' expiring Section 8 agreement were resolved in a collaboration with the US Department of Housing & Urban Development, CPC, the borrower and Freddie Mac in underwriting and closing the transaction.
"In the midst of one of the most turbulent economic climates in recent history, CPC's longtime partner, Freddie Mac, has remained a steadfast and viable option for property owners and developers in need of financing for multifamily projects," says Annemarie Uebbing, vice president and regional director of the New Jersey office of CPC, which also finances multifamily development throughout New York and Connecticut. Since its founding in 1974, the non-profit has invested more than $7 billion in nearly 136,000 housing units.
According to Uebbing, "Magellan Manor Apartments is an excellent example of how quality affordable housing can be developed in an efficient manner when CPC and Freddie Mac combine with the public and private sectors to meet the critical need for affordable housing."
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