The Community Preservation Corp. (CPC), one of the leading mortgage lenders for multifamily affordable housing, arranged the closing of a $2.7 million construction loan and $1.3 million permanent loan to Birkett Properties LLC to build the Birkett Mills Apartments in the village of Penn Yan. The re-development will transform a vacant, historic building into a mixed-use development containing 13 residential, market-rate apartments and 4,600 s/f of commercial space.
"The Birkett Mills project is a great example of CPC's continued commitment to help neighborhoods in distress transform into neighborhoods of opportunity," said Nicholas Petragnani, senior vice president and regional director of Central & Western New York for CPC. "Thanks to our dedicated public and private partners, not only will 13 families have access to quality housing, but two commercial units will also be available for local businesses. CPC believes that innovative financing - such as the Historic Tax Credit equity and RESTORE NY grant used in this project - combined with public-private partnerships are instrumental in revitalizing neighborhoods, and we are proud to be part of a unified effort to support a local community."
Located on 120 & 130 Water St., the Birkett Mills Apartments involve the gut rehabilitation of a long vacant structure into a mixed-use building. The development will create 12 two-bedroom apartments with rents ranging from $1,150 to $1,324 per month, and one one-bedroom unit with a monthly rent of $1,200. The first floor and basement of the building will be home to two commercial units, tenant storage rooms, and commercial storage rooms. Additionally, parking for up to 50 vehicles will be provided in paved lots in the rear and side of the building, which will enhance the value of the retail space.
Many public and private entities came together to bring about this unique deal, including $1.475 million in Historic Tax Credit equity, a $2.25 million RESTORE NY grant from the state of New York, and a 10-year PILOT agreement with the Yates County IDA. CPC will provide a $2.695 million construction loan for the purchase and gut rehabilitation of the project, along with a $1.3 million permanent loan, which will be 100% SONYMA insured. The project also received a permanent loan commitment from the Canandaigua National Bank for $1.3 million as a backup to CPC's permanent loan.
The contractor for the project is Iversen Construction Corp., and the property will be managed by Chrisanntha, Inc., a construction management and development company.
The project will be completed by the first quarter of 2014. Tags: