Lument Closes $31.7 Million Refinance for Affordable Multifamily Community in Brooklyn
New York, NY — Lument today announced the closing of a $31.7 million U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) Sec. 223(f) loan to assist Wavecrest Management with the refinance of Lefferts Heights, an 87-unit affordable multifamily community in Brooklyn, New York. Joshua Reiss, a director with Lument’s affordable housing team in New York, led the transaction.
“Helping Wavecrest Management build upon its success as an affordable housing developer is always a pleasure, and this transaction was no different,” said Reiss. “With the successful refinance of Lefferts Heights, Wavecrest expands on its commitment to preserve the financial and physical viability of affordable multifamily communities across New York City.”
Wavecrest Management, a repeat Lument client, is family-owned and operated and one of the largest management companies in New York City, overseeing more than 30,000 units housing approximately 85,000 residents.
“For a family-run company like Wavecrest that plans to continue to provide quality affordable housing, the FHA Sec. 223(f) program was ideal as it allows them to hold the property for generations without maturity risk,” Reiss added.
Located in the Clinton Hill neighborhood of Brooklyn, Lefferts Heights was built in 1974 and contains 87 units ranging from 550 to 970 square feet. The property benefits from a Section 8 housing assistance payment (HAP) contract where tenants pay 30% of their income towards rent.
The FHA loan has a long term, fixed interest rate and is fully-amortizing. In addition to refinancing existing debt, the closing extends the Section 8 HAP contract for 20 years and provides funds for renovations to improve the property’s accessibility.
Lument, a subsidiary of ORIX Corporation USA, is a national leader in commercial real estate finance and delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. The company has approximately 600 employees in over 30 offices across the United States. Securities, investment banking, and advisory services are provided through Lument Securities, LLC, member FINRA/SIPC. Investment advisory services are provided by Lument Investment Management, LLC is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit https://www.lument.com.