December 07, 2015Fannie Mae to Provide Financing and Preserve Affordability for One of the Largest Housing Communities in New York City
Company Continues to Prioritize Access to Workforce Rental Housing by Financing Stuyvesant Town-Peter Cooper Village in Manhattan
WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that it is continuing efforts to ensure access to workforce rental housing by providing low-leverage 10-year financing for the sale of Stuyvesant Town-Peter Cooper Village, a 110-building residential community with 11,241 units on the East Side of Manhattan. In financing one of the country’s most significant residential communities, Fannie Mae will help New York City maintain 5,000 rental units that are affordable to moderate-income residents over the next 20 years. To finance the acquisition of this property, an affiliate of Blackstone will secure a $2.7 billion loan from Wells Fargo Multifamily Capital, one of Fannie Mae’s 25 Delegated Underwriting and Servicing (DUS®) lenders.
“Preserving rental housing for moderate-income residents in New York City is a significant challenge. We are pleased to partner with Wells Fargo and play a critical role in this transaction to help maintain affordability for this historic property and the people of New York,” said Jeffery Hayward, Executive Vice President for Multifamily, Fannie Mae. “Fannie Mae is the leader in providing financing for workforce housing. Our deep understanding of the multifamily market combined with our financing expertise will ensure the preservation of this much needed workforce housing in one of the most expensive markets in the country.”
The strengths of this transaction include one of Fannie Mae Multifamily’s top DUS lender partners, a premier and strong sponsor, a low-leveraged loan, and solid public support from the City of New York and its Housing Development Corporation.
“This deal would not have been possible without Fannie Mae because there are very few financing sources in the marketplace with the expertise to execute these types of transactions,” said Alan Wiener, Group Head of Wells Fargo Multifamily Capital Group. “I also applaud the City of New York and Blackstone for their leadership and determination to preserve affordable rental housing for the residents of Stuyvesant Town-Peter Cooper Village over the next 20 years.”
“Fannie Mae Multifamily and Wells Fargo are important partners in our effort to preserve the affordable heritage of Stuyvesant Town-Peter Cooper Village,” said Jon Gray, Global Head of Real Estate at Blackstone. “Fannie Mae understood the complexity of the transaction and provided long-term financing, which will ensure that the community will serve as a home for working and middle-class families in New York City for years to come.”
Providing liquidity to the rental market through DUS lender partnerships has been the core mission of Fannie Mae’s Multifamily business for nearly 30 years. The company’s unique DUS platform relies on shared risk, with lenders retaining some of the underlying credit risk of the loans they sell to Fannie Mae. Our lender partners are delegated the ability to underwrite, close, deliver, and service loans on all types of multifamily properties, which means faster decisions and quicker closings for customers.
As the leading source of financing in the multifamily sector, Fannie Mae remains a reliable partner across the spectrum of the nation’s rental housing needs. To learn more about Fannie Mae’s Multifamily business, visit https://www.fanniemae.com/multifamily/index.
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