Giuliani hails CPC's $130M loan to Parkchester South

Real Estate Weekly, March 15, 2000

Mayor Rudolph W. Giuliani recently hailed the closing of a $130 million loan that will be used to renovate Parkchester South Condominiums, located in the East Bronx. Under the leadership of The Community Preservation Corporation (CPC), this renovation project, the largest in the country's history, will now move into full swing. The loan will be used to significantly upgrade the 60-year old complex's 8,000 apartments in the South and guarantee for South Condo residents modern apartments with new wiring, plumbing and windows.

Mayor Giuliani said, "This is an important day for thousands of Parkchester residents, for the people of the Bronx, and for all New Yorkers. A unique and historic residential development will now be modernized, thus insuring its future. The City of New York was pleased to provide the tax incentives necessary to make this project viable. My congratulations to CPC, its partners, this wonderful Bronx community and local leaders for persevering in making this restoration a reality."

The $130 million loan was arranged by Parkchester Preservation Company, L.P. (PPC) - a partnership between CPC Resources, Inc., a subsidiary of CPC, and real estate investors Morton Olshan and Jeremiah O'Connor. PPC will use is its holdings as collateral for the loan.

CPC negotiated with its member banks to finance the renovation of Parkchester. The participants in the loan, in addition to CPC, are Fleet Bank, National Association, Emigrant Savings Bank, J.P. Morgan Community Development Corporation, Citibank, N.A., The Dime Savings Bank of New York, Apple Bank for Savings, Astoria Federal Savings and Loan Association, HSBC Bank USA, HSBC (Republic), Independence Community Bank, Amalgamated Bank of New York and Greenpoint Bank. Additional lenders expected to join the financing are Chase Manhattan, Freddie Mac, TIAA/CREF and Deutsche Bank.

The Community Preservation Corporation is a 25-year old private, not-for-profit lending consortium comprised of 94 banks and insurance companies.