Rockport Mortgage Corporation recently announced the closing of an FHA Section 223(f) refinancing loan of $38.6 million for Union Street Houses in Brooklyn, NY. The property is owned by Scott Jaffee, Managing Member of Metropolitan Realty Group, LLC
Situated in the Crown Heights neighborhood of Brooklyn, the property consists of 119 units contained within six buildings. The buildings, constructed between 1914 and 1925, are a mix of studio, one, two and three-bedroom units.
Funding will be used to complete capital improvements to enhance the marketability of the property and improve the quality of life for the residents. Units will be updated with new bathrooms and a select number of units will receive new vinyl plank flooring. In addition, the buildings will receive updated hallway and lobby improvements including 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 Contract commitment to ensure Union Street Houses remains affordable for the next 35 years through 2055.
“The HUD 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 Scott Jaffee. “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.”
“Rockport Mortgage is pleased to partner with The Metropolitan Realty Group to preserve quality, affordable housing across the region, noted Dan Lyons, Managing Partner of Rockport Mortgage Corporation. “Some of the core tenets of Metropolitan Realty Group’s mission is a strong belief in education and maintaining quality, safe homes for residents of their communities. At Rockport Mortgage we share in these same beliefs and are particularly honored to assist Metropolitan Realty in leveraging the excellent FHA preservation programs provided by HUD to meet these goals.”
About Rockport Mortgage Corporation
Consistently ranked as one of the top FHA multi-family lenders in the country, Rockport Mortgage is a privately-held commercial banking firm located on the North Shore of Boston. Founded in 1992, Rockport Mortgage specializes in providing FHA-insured loans to market-rate, affordable and senior multi-family properties as well as assisted living and healthcare facilities. The Rockport Mortgage team works collectively to navigate the complexities of FHA/HUD-insured financing programs, developing strategic solutions to meet the diverse needs of its clients. For more information, visit www.rockportmortgage.com
About Metropolitan Realty
Metropolitan Realty Group is a full-service property management company and real estate developer with an expertise in affordable housing. The company specializes in rehabilitation of distressed properties. Currently, Metropolitan Realty Group has over 3,500 units of Project Based Section 8 Housing with an aggregate value in excess of $1 billion.