Prudential, Freddie Mac Provide $49.5M in Loans for Brooklyn Affordable Housing Complex
David Jones Feb. 26, 2016, 7 p.m.
Prudential Mortgage Capital Company and Freddie Mac provided $49.5 million in financing to preserve the affordability of the Rutland Road Houses, a 438-unit former Mitchell-Lama Housing complex at 60 East 93rd Street in Brooklyn, Commercial Observer has learned.
The developer, a firm called William R. Lucas Realty Services, obtained the financing through a complex series of public and private agreements that are part of an effort to maintain affordability under the Mitchell-Lama Housing once its 40-year term on the property expires.
Under the new deal structure, the New York State Housing Finance Agency will issue bonds to help finance the deal and William R. Lucas Realty Services will remain in control of the property.
New York Gov. Andrew Cuomo previously announced the agreement to keep the complex affordable, however, city records give a breakdown of how Freddie Mac worked with Prudential and several state government entities to finance the agreement.
“All of the resources that Freddie Mac and the state of New York brought to bear resulted in the preservation of these units as affordable,” David Leopold, the vice president of targeted affordable housing at Freddie Mac, said in a phone interview.
According to city records, the $49.5 million in financing includes $12.6 million to fund acquisition costs, $23.6 million toward building loan costs and $13.3 million toward project loan costs.
The new financing is set to mature Feb. 1, 2051.
A spokesman for Prudential only confirmed the company’s participation in the financing agreement.