Capital One Refis Upper Manhattan Apartment Building With $46M HUD Loan
Fairstead has picked up a $46.4 million loan from Capital One to refinance an apartment building in Upper Manhattan, Commercial Observer can first report.
The loan, on 680 St. Nicholas Avenue, was made under the U.S. Department of Housing and Urban Development‘s 223f program, according to Fairstead. Under the initiative, Capital One will be insured against default by the federal government throughout the permanent loan’s term.
The eight-story building, constructed in 1900, has just over 100 units, which are subsidized. Eligible residents can also supplement their rent at the building, known as St. Nicholas Manor Apartments, with federal vouchers under the Section 8 housing program.
A renovation that Fairstead finished last year added a community room at the site, as well as improved telecommunications infrastructure for residents. Under the terms of a new agreement with the New York City Department of Housing Preservation & Development, Fairstead pledged to keep the building’s apartments affordable to low-income residents until at least 2060.
“Affordable housing continues to be a scarce resource in this country, especially in New York,” Will Blodgett, one of Fairstead’s co-founders, said in a statement. “Public-private partnerships are key to creating and maintaining this affordability,” he added, citing the local and federal officials that partnered on the deal.
The deal is the most recent of nine multifamily properties totaling 49 buildings that Fairstead has refinanced in the last six months using HUD-backed loans, according to the landlord. Others included four buildings in the Sunset Park section of Brooklyn, two buildings on Manhattan’s West Side, and others in Brooklyn and Harlem. Those nine debt deals totaled $310 million.
Truist — the bank created by last year’s merger of SunTrust and BB&T — was the lender behind six of the nine refinancings. Greystone chipped in the debt for one of the projects as well.
A spokesman for Capital One didn’t immediately respond to an inquiry.