Loan Structure Incentivizes New York City-Based Co-Op and Multifamily Rental Owners for Implementing Energy and Water Improvements
Greystone announced it has closed the first Fannie Mae M-PIRE (Multifamily Property improvements to Reduce Energy) loan for a Bronx rental building. The $865,000 loan was originated by Robert Meehan of Greystone and Jeff Rueb of North Coast Funding for 2705 Colden Avenue in Baychester.
The Fannie Mae M-PIRE mortgage product is available to affordable and market rate cooperative and conventional rental housing owners in the five boroughs of New York City. The loan offers an efficient and cost-effective way to both make improvements and comply with NYC energy requirements (Local Law 43 Clean Heating Oil, Local Law 84 Energy Benchmarking, and Local Law 87 Energy Audits and Retro-commissioning).
M-PIRE permits property owners to access more capital than a traditional Fannie Mae mortgage because it counts projected energy and water savings toward underwriting requirements. Typically, energy and water costs can account for as much as 20-35% of a property’s operating expenses. Property owners can quantify and track their energy and water usage over time using ENERGY STAR Portfolio Manager®.
“The Fannie Mae M-PIRE loan was the perfect solution for this property as I was already in the process of upgrading the boiler and simultaneously seeking supplementary financing for additional acquisitions,” said Zoran Kuburovic, borrower and property owner.
“We are thrilled to have partnered with Greystone to close the first M-PIRE mortgage. We look forward to growing this program as a way to support multifamily owners to lower their own and their tenant’s rising energy costs while upgrading the quality of multifamily rental housing in New York City,” said Hilary Provinse, Senior Vice President for Multifamily Customer Engagement, Fannie Mae.
“Fannie Mae has created a unique product tailored to property owners in New York City -- who are facing increasing requirements to burn cleaner fuel – so they may realize these ultimate energy savings right up front,” said Meehan. “By basing the underwriting on future energy savings, property owners are absolutely incentivized to make the improvements sooner rather than later.”
“As a mortgage broker bringing a number of financing options available to clients from both banks and private lenders, Greystone’s execution in bringing the M-PIRE deal to close was exactly what I’d hoped for,” said Rueb.
Greystone provides mortgage finance solutions across multiple platforms, including FHA, Fannie Mae, Freddie Mac, USDA, CMBS, bridge, mezzanine and other proprietary loan programs.