(Arlington, VA – February 08, 2016) – National Cooperative Bank (NCB), a leading financial services company dedicated to serving cooperatives and housing communities nationwide, has provided $17.9 million in financing to Gill Park Cooperative, an affordable housing cooperative in Chicago, IL. NCB Senior Vice President Larry Mathe arranged the financing, in collaboration with the co-op board of directors and managing agent.
The 260-unit limited equity housing cooperative, which, from the beginning has operated as a 100 percent Section 8 project, was able to secure a competitive mortgage to complete its planned capital improvements over the next two years without incurring any increase in current maintenance fees.
“NCB’s primary focus is finding the best financial solutions for housing cooperatives nationwide,” stated Mr. Mathe, an SVP at NCB. “We have worked with Gill Park and many other housing cooperatives to provide access to capital at a competitive rate, in order to fund improvements to their properties for current and future homeowners.”
“For nearly a decade, the board at Gill Park Cooperative has had a vision of a major rehab for the building. It looked at a number of financing options such as conventional and HUD insured loans, but none of the financing alternatives provided the necessary funding to properly complete the project,” stated Mike Levine, managing agent for the cooperative.
Planned improvements at the co-op include new plumbing and HVAC system, a redesigned lobby and laundry facilities, as well as a number of exterior improvements. In addition, all interior units will be renovated with new kitchens, floors and wall finishes.
“Meeting with Larry at NCB was a big step toward the realization of the board’s dream,” added Levine. “After analyzing financial alternatives, he showed the board how it could generate almost $18 million in loan proceeds, which would allow for the complete rehab of the building in a manner that far exceeded the decade-long vision. The loan closed easily, and the rehab process is underway – the board is thrilled and our co-op residents cannot wait to move into their brand new apartments.”
