Wells Fargo & Co. and Freddie Mac have announced the closing of a $531.48 million Freddie Mac Capital Markets Execution loan for Spring Creek Towers, more commonly known as Starrett City, located in Brooklyn, N.Y.
Built as a Mitchell-Lama rental in the 1970s, Starrett City has provided affordable housing in New York City for approximately 35 years. Through this refinancing, the owners of the property, Starrett City Associates, will be able to extend the affordability of all of the units for another 30 years. Freddie Mac has committed to purchase the loan, which Wells Fargo originated, on the country's largest federally assisted property.
The development, which houses more than 12,000 residents in 46 buildings, is located on 140 acres of landscaped grounds.
‘This was a large and complex transaction, which required cooperation among numerous government agencies and private companies to bring to closing," says Starrett City Inc. President Robert Poll.
Over the past several years, many buildings originally developed under the affordable Mitchell-Lama program began the process of opting out of the program and converting to market-rate rentals, often resulting in many low- to moderate-income tenants' displacement.
As a result of this refinancing, affordability has been maintained, and over $40 million will be reserved for capital improvements to the complex, Freddie Mac and Wells Fargo say.
SOURCE: Freddie Mac