Coney Island Apartment Secures $48M Affordable Loan

BROOKLYN—CPC Mortgage Co., a subsidiary of The Community Preservation Corp. and Ocean Towers Partners, a joint venture between Proto Property Services and the Community Development Trust, have closed a $48 million Freddie Mac Targeted Affordable Housing loan to refinance a 360-unit property in the Coney Island neighborhood.

Located at 2960 West 24th Street, the 19-story building sits on 3.5 acres. The property is more than 98% occupied, and roughly 91% of the units receive Section 8 vouchers.

The property was built in 1974 through the Mitchell-Lama Rental Program, which was created to provide affordable rental housing for low- and moderate-income households in New York. The property, Ocean Towers, exited the Mitchell-Lama program in 2006. Then, Proto Property Services and CDT purchased the property in 2013, shortly after Hurricane Sandy, in a transaction utilizing subsidy from the NYC Department of Housing Preservation and Development (HPD), funding from the NYC City Council, and $36 million in permanent financing from CPC. This helped to ensure the long-term affordability of Ocean Towers with a new regulatory agreement from HPD. The partners also completed a $10 million rehabilitation, which included a number of resiliency upgrades.

Freddie Mac’s Targeted Affordable Housing (TAH) loans are available to preserve affordable rental housing in underserved communities. Eligible properties are affordable to tenants with low and very-low incomes and may include Section 8 financing, Section 236 financing, tax abatements, or other affordability components.