A $187.5 million federally insured mortgage has been granted to Mutual Redevelopment Houses for the refinancing of the Penn South in Chelsea affordable housing complex. The funding, supplied by Wells Fargo, will replace a $134 million loan from the New York City Housing Development Corporation. The loan is secured against six of the ten buildings in the scheme, 212 Ninth Avenue, 305 Ninth Avenue, 313 Eighth Avenue, 311 West 24th Street, 270 Ninth Avenue and 250 Ninth Avenue. The buildings are part of the 10-building Penn South Co-op Complex, which has 2,820 affordable housing units. In February, the City Council approved extending a tax abatement at Penn South through 2052, which paved the way for the refinancing deal.
Penn South general manager Brendan Keany stated that the deal will reduce the company’s annual debt service by $3 million, and stave off the interest rates increases. “We were very concerned that we would have much higher interest rates,” Keany said. “[It] will safeguard us against future interest rate hikes because the term of this loan is 35 years, and the interest rate is 3.23 [percent].”
