NEW YORK CITY—Lending a helping hand to developers looking to build affordable housing, Trimont Real Estate Capital NYC and Amalgamated Bank have entered an agreement to provide small to mid-sized commercial real estate construction loans for the new construction and rehabilitation of affordable multifamily properties here.
An affiliate of Atlanta's Trimont Real Estate Advisors, Trimont Real Estate Capital NYC was established as a platform for capital providers seeking small-balance commercial real estate loans. The Trimont–Amalgamated Bank initiative will focus primarily on moderate rehabilitation and construction lending across New York City's five boroughs, supporting Mayor Bill de Blasio's goal of boosting affordable housing units by 200,000 over the next ten years.
“It is an honor to work with Amalgamated on such a historic initiative,” says Frank Creamer, president of Trimont Real Estate Capital NYC. “By improving housing conditions for more New Yorkers, we hope to strengthen communities throughout the city.”
Rehabilitation of existing properties is the primary target of the initiative, but it will also include select new construction. Revitalization efforts include a range of capital improvements and an emphasis on “green” upgrades to help increase properties' energy efficiency.
“Today's announcement builds on Amalgamated Bank's long history of helping make affordable housing possible in New York,” adds Keith Mestrich, president and CEO of Amalgamated Bank. “The agreement with Trimont equips Amalgamated with access to top talent in loan sourcing, credit underwriting and construction loan servicing, thereby enabling the bank to expand funding for the construction and rehabilitation of affordable homes for working families.”
Trimont Real Estate Capital will focus on small to moderate-size properties, with loan amounts from $3 to $20 million. Trimont Real Estate Advisors will provide underwriting, due diligence, servicing, and construction loan management support.
Amalgamated Bank will work with various New York City agencies and facilitate the inclusion of available subsidiaries into each project, as appropriate. The bank will approve all loans under the program pursuant to its internal credit criteria and will hold the loans on its balance sheet for the expected term of each loan.
It is expected that each construction loan originated under this program will have a “forward takeout” commitment for permanent financing in place at the time of closing.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
