Merchants Capital has recently provided a $348 million Mortgage-Backed Securities (MBS) loan from Fannie Mae to support the rehabilitation of NYCHA’s Reid Park Rock project. This initiative, with an estimated cost of $635.6 million, aims to renovate 87 buildings in Brooklyn and benefit approximately 3,500 residents.
The development team behind this project includes BRP Companies, Fairstead, and Urbane. They will be responsible for delivering comprehensive repairs and upgrades while also focusing on property management and community programs. The financing structure utilized Fannie Mae products in order to recapitalize the project while preserving cash flow and addressing immediate rehabilitation needs. This partnership involves NYCHA as well as HDC and The Local Development Corporation of East New York.
According to Michael Milazzo, senior vice president of Originations at Merchants Capital: “We were able to provide a more expansive financing structure by including Fannie Mae products in the transaction.” He further added that it was an honor for them to support NYCHA along with their outstanding development team on additional PACT affordable housing projects.
This significant investment by Merchants Capital is set out not only improve living conditions but also strengthen relationships between all involved parties without mentioning any specific organizations or locations such as Connect CRE or Connect LA/Texas.
