As multifamily spreads narrow, especially in the super-competitive Manhattan market, institutional lenders are showing interest in affordable housing, says Community Preservation Corp COO Sadie McKeown.Citi has provided $250M to CPC for the creation or preservation of 6,000low- and moderate-income units in New York State, half of those in NYC.Sadie says deals like this provide an opportunity for institutional lenders to reach into NYC's outer boroughs, which host smaller properties that often are below big banks' threshold.

Sadie also tells us CPC, a consortium of 70 finance companies, is restructuring, and the Citi funds enable it to continue providing affordable housing until it recapitalizes its credit agreement at the end of the year. $100M in construction financing has been fully committed for preservation projects throughout NYC over the next 18 months. First up: $1.6M (plus $2.4M from NYC) to rehab 539-541 E 147th(above) in the Bronx, owned by Workforce Housing Advisors. The other $150M is for permanent financing around the state, including NYC.

JLL national affordable housing head Chris Espenshade (right) tells us institutional capital sees high yields in affordable housing, just as REITs--which have trouble making the case to Wall Street every quarter--exit. Her team is working on two Section 8 deals to institutional investors in the Mid-Atlantic. AIMCO is under contract to buy the 209-unit Bolton North Apartments seniors housing in Baltimore, and another deal on the U Street Corridor in DC is in the works. (We snapped Chris at the Bisnow Multifamily Annual Conference in DC in November with colleague Erin Miller and AHC Greater Baltimore's Andrew Vincent. BMAC West is coming up in Beverly Hills on April 11. Sign up here!)