The Community Preservation Corp. (CPC) announced the closing of a $40 million loan through Freddie Mac to refinance the 309-unit Cathedral Parkway Towers development in New York City’s Upper West Side.
The deal will lower the Mitchell-Lama project’s annual debt and prevent rent increases at the property.
Cathedral Parkway Towers consists of a 22-story building and an 11-story building. The towers have 43 studios, 50 one-bedroom, 98 two-bedroom, 99 three-bedroom, and 19 four-bedroom apartments, with one two-bedroom apartment reserved for the superintendent. The development has a 7,200-square-foot commercial space that is leased free-of-charge to a nonprofit preschool operating for the benefit of the tenants. Other amenities include 24-hour security, laundry facilities, a playground, a landscaped common courtyard, a community room, and two underground parking garages with 90 spaces.
The $40 million Freddie Mac loan will maintain affordability by refinancing the existing $35 million mortgage and covering other costs, with the remaining loan proceeds going into a reserve account held by the New York State Department of Housing and Community Renewal. The Freddie Mac product offers lower interest rates and more favorable terms compared to its standard products. The refinance will lower annual debt service payments by as much as $1 million, said officials.
For over a decade, CPC has worked closely with the United Tenants Association of Cathedral Parkway Towers to create and maintain its unique ownership structure. The decades-long drive for ownership began through a rent strike in 1975, followed by tenant management of the two buildings since 1977. In 2004, CPC financed a $28 million construction loan and a $35 million 10-year permanent loan through the New York City Retirement Systems, with 100% State of New York Mortgage Agency insurance, successfully transferring ownership to the Tenants Association from the original developer. In 2010, CPC also closed a $4.5 million permanent loan under its Green Financing Initiative to make energy-efficient retrofits such as lighting changes, weather-stripping, adding a condensing hot water maker, and installing new exterior doors, ventilation fans, and five new elevator motors and equipment.
CPC is a nonprofit lender providing capital to underserved neighborhoods throughout New York state since 1974.