New York, NY. Nixon Peabody LLP advised on a refinancing deal that keeps almost 3,000 affordable housing units in New York City’s Chelsea neighborhood.
Built in 1962, the ten-building Penn South Cooperative is owned and operated by its occupants, who serve as member-shareholders. Penn South has benefitted since its inception from a real property tax abatement from the City of New York. In conjunction with an extension of the abatement, the refinancing will preserve the affordability of the cooperative for the 35 year term of the loan.
Nixon Peabody represented Federal Housing Administration (FHA) lender Wells Fargo in the refinancing. In addition to preserving nearly 3,000 affordable housing units, the deal—valued at $187.5M—reduced Penn South’s debt service, locked in a low interest rate, and is insured by FHA under the Section 223(f) program.
Nixon Peabody’s deal team included attorneys John Kelly, Susanna Mitchell and Alexander Rosso from the firm’s Affordable Housing practice.