Williamsburg Bridge, New York.

NEW YORK CITY-  Rockport Mortgage Corporation has closed an FHA Section 223(f) refinancing loan of $38.6 million for Union Street Houses in Brooklyn. Scott Jaffee, a managing member of Metropolitan Realty Group, owns the property. 

Situated in the Crown Heights neighborhood of Brooklyn, the property consists of 119 units contained within six buildings. The buildings were constructed between 1914 and 1925 and are a mix of studios and one, two and three-bedroom units.

Funding will go to the completion of capital improvements for property marketability and improve the quality of life for current residents. Units are set to receive new bathrooms and some will receive new vinyl plank flooring. In addition, renovations to the hallway and lobby will take place, receiving new mailboxes, a new boiler and modernization of three elevators.

As part of the refinancing, the owner entered into a new 20-year Mark-Up-To-Market Section 8 Contract at loan closing, extending their existing 15-year Section 8 Contract commitment to ensure Union Street Houses remain affordable for the next 35 years through 2055.

"The 223(f) loan program was the perfect execution for my property. It allowed me to refinance my current mortgage at a very low-interest rate for 35 years", said Jaffee in a prepared statement. "In addition, it afforded me the ability to take additional cash to make necessary capital improvements. Working with Dan Lyons and his team at Rockport made the execution and closing of this complicated transaction as seamless and quick as possible."