Mutual Redevelopment Houses has received a $187.5 million FHA mortgage to refinance Penn South Houses, a sprawling affordable-housing complex in Manhattan’s Chelsea neighborhood, according to property records.
Wells Fargo Multifamily Capital provided the $187.5 million federally-insured loan, which matures in 2052. New York Housing Development Corporation also provided a $16.1 million surplus cash mortgage.
“We are pleased to ensure and extend the affordability of Penn South through the year 2053 with this loan,” Thomas Schissler, a managing director at Wells Fargo Multifamily Capital, told Commercial Observer.
Penn South is a 10-building, 2,820-unit housing development that offers affordable housing units for low- and moderate-income residents. The properties being refinanced are located at 212 Ninth Avenue, 311 West 24th Street, 250 Ninth Avenue, 313 Eighth Avenue, 270 Ninth Avenue and 305 Ninth Avenue.
The new debt replaces a $134 million loan New York City Housing Development Corporation that was originated in 2011. That loan was then assigned to Wells Fargo the same day. A $45 million second mortgage was also provided in June 2014 by New York City Housing Development Corporation, also assigned over to Wells Fargo.
Officials at Mutual Redevelopment Houses could not immediately be reached for comment.