Sky Deal Provides Mixed-Income Housing in Sky-High Rental Market
August 30, 2017
Affordable rental units in midtown Manhattan? In a city where rents are sky high, the landmark Sky Residences deal provides funding for 1,175 rental apartments—with 25 percent of these for lower-income residents.
It’s the largest single-asset tax-exempt financing deal we’ve ever done—for the largest single-tower residential building in the United States.
“The complex transaction took a strong partnership between Freddie Mac, the New York State Housing Finance Agency, Greystone, and The Moinian Group,” said David Leopold, Freddie Mac Multifamily’s vice president of Targeted Affordable Sales & Investments.
The mixed-income project was funded with 4 percent low-income housing tax credits as well as tax-exempt and taxable variable-rate bonds issued by the New York State Housing Finance Agency. Freddie Mac bought the bonds with plans to securitize them into a single-asset securitization, a first-of-its-kind structure that provided certainty of execution combined with better pricing.
Read more in Affordable Housing Finance.