$40m APF loan will help save family homes.

American Property Financing (APF) announced the completion of a $40 million loan transaction to underwrite the conversion of West Village Houses, from a middle-income rental property to a cooperative apartment residence.

The property is located in the highly desirable West Greenwich Village area of lower Manhattan and consists of 420 residences located within 42 five-story, low-rise, walk-up apartment buildings. There is a 240-space indoor parking garage on the premises, as well.

Originally constructed in 1970 under the auspices of the Mitchell-Lama Law, the West Village project was eventually withdrawn from the program (by building management) in 2004.

In light of this situation, the existing tenants were faced with the real prospect of paying unaffordable NYC market rents as well as the potential loss of their units upon withdrawal from the Mitchell-Lama program. As a result, the tenants association filed a plan in 2005 to purchase the property and convert the West Village Houses to a co-op. The major benefit of this transaction is the preservation and maintenance of affordable housing in New York City. APF's $40 million loan will have a term of 15-years; and the AFL-CIO has also agreed to rate-lock the loan and commit to purchase Fannie Mae's MBS once it is issued.

"We helped a group of people preserve their homes and NYC affordable housing. This was more than just good business for APF," stated EVP Tom Schissler, who originated and creatively structured this unique loan on behalf of APF and the West Village Housing Tenants Corp.