CPC Wins Fannie Mae Multifamily Lending Approval; Moving NYC Headquarters to News Building in 2019
Real Estate In-Depth | November 2018
NEW YORK—Fannie Mae has approved the Community Preservation Corp., a leading nonprofit affordable housing and community revitalization finance company, as a Multifamily Special Affordable Lender to originate Multifamily Affordable Housing (MAH) and Small Mortgage Loans.
Also, CPC reported that it will move its New York City operations into nearly 30,000 square feet of space at the News Building at 220 East 42nd St. next year.
“It’s our mission to make investments in housing that bring stability to underserved communities and transform them into vibrant places to live,” said Rafael E. Cestero, president and CEO of CPC. “Fannie Mae’s MAH and Small Mortgage Loans products give us new tools to help preserve affordable housing and meet the needs of small buildings which are a critical piece of the housing stock in communities large and small.”
“Fannie Mae is excited to work with CPC to further support the multifamily market through our MAH and Small Mortgage Loan financing,” said Angela Kelcher Director for Multifamily Affordable Housing, Fannie Mae. “There is a critical need to preserve affordable housing in this country and it’s a priority for Fannie Mae to find new ways to help solve this problem.”
CPC is now able to utilize products to preserve the affordability of subsidized rental housing through long-term financing. CPC can offer flexible loan terms and competitive pricing, fixed- or variable-rate financing options, and certainty and speed of execution. Eligible projects include various affordable housing modalities such as expiring Low-Income Housing Tax Credit deals, refinancing of tax-exempt bonds, RAD-eligible properties, HUD Section 8 HAP Contract properties, existing Rural Housing Services Section 515 loans, and loans insured under Sections 202 or 236 of the National Housing Act.
CPC also notes it can offer financing tailored to the unique needs of small building owners with flexible loans up to $3 million. In large markets, the flexibility of these products streamlines underwriting, provides quick closing, and guarantees an easy execution that is predictable across all market cycles, CPC officials note.
Fannie Mae’s approval of CPC as a Special Affordable Lender for its products furthers CPC’s goal of providing multifamily borrowers with a one-stop-shop for their acquisition, refinancing, or rehabilitation needs.
Established in 1974, CPC is a non-profit affordable housing and community revitalization finance company that provides a full suite of capital products through its construction lending, permanent lending, and equity investing platforms. Since its inception, CPC has leveraged more than $10 billion in private and public investment to finance more than 193,000 units of multifamily housing.
The New York City lease deal at 220 East 42nd St. was announced by brokerage firm Cushman & Wakefield, which arranged the 29,400 square-foot deal for CPC. The deal has a 30-year term with building owner SL Green Realty. CPC will be occupying the entire 16th floor and is expected to make the move to its new space in the spring of 2019 from its current headquarters at 28 East 28th St.
Cushman & Wakefield represented both the tenant and the landlord in the transaction. A team consisting of David Lebenstein, Daniel Organ and Michael Burgio represented the tenant, CPC, and Tara Stacom and Barry Zeller represented the landlord, SL Green Realty Corp. Stroock & Stroock & Lavan LLP advised Community Preservation Corporation, and the deal team included Ross Moskowitz, Trevor Adler and Jack Bart.
“CPC has been operating in their previous space for many years, and in their search for new office space, they were looking to modernize the workplace and find a new environment that would encourage collaboration,” said David Lebenstein of Cushman & Wakefield. “The design and location of their new space at 220 East 42nd Street will more than accomplish this goal.”
“Over the last few years we’ve grown our business and expanded the impact of our investments in housing in New York and into new geographies throughout the Northeast. As we’ve added staff and evolved our business infrastructure, it was our goal to find a new office space that could adapt as we continue to grow, and that also supports our collaborative nature and the way we work together,” said CPC’s Cestero. “Our new space on the 16th floor of this historic building will give us a flexible, modern environment that reflects who we are as a company.”
Designated a National Historic Landmark in 1989, 220 East 42nd St. is a 37-story, 1,169,582 rentable-square-foot Art Deco skyscraper owned by SL Green Realty Corp. Notable tenants of the property include Omnicom Group, WPIX, and the United Nations Development Program. The building is also LEED Gold certified.