Taconic, Clarion Seal $130M Loan for Bronx Affordable Apartment Complex
By Cathy Cunningham December 8, 2021 5:00 pm
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The year may be drawing to a close but that doesn’t mean the deals have stopped.
Taconic Partners and Clarion Partners just sealed a $130 million loan for Eastchester Heights, the joint venture’s massive apartment complex spanning five city blocks in the Bronx, Commercial Observer can first report.
Wells Fargo provided the loan, while Eastdil Secured negotiated the transaction.
Situated on nearly 15 acres, the project is among the largest residential communities in the Bronx. Its 114 buildings were constructed in 1934 and comprise 1,416 rent-stabilized units.
The new round of financing retires $115 million in previous debt — provided by Capital One in 2018 —and also funds ongoing renovations at the project.
“We’re proud to continue investing in this community,” said David Milch, vice president of Taconic Partners. “The closing of this loan is an important step towards preserving affordability. We are committed to providing an accessible, top-quality residential destination in the Bronx.”
Taconic and Clarion acquired the complex — at 3480 Seymour Avenue — for $136 million in 2007 from Urban American and City Investment Fund.
The purchase may have marked the joint venture’s first steps into the affordable housing space, but the project’s transformation over the years has made it a template for private investment into New York City’s workforce housing stock.
Over the past 14 years, Taconic and Clarion have completed significant capital improvements to enhance the quality of life for Eastchester Heights’ residents, undertaking renovations and upgrades to the property’s landscaping, building entrances, security, energy efficiency and sustainability.
Case in point, the refinance follows a 200,000-square-foot solar installation that was completed in July. The climate-friendly rooftop addition will produce more than 1.1 million kilowatt hours of clean electricity, and help New York City reach its goal of reducing greenhouse gas emissions by 80 percent by 2050.
Today, Eastchester Heights features plenty of outdoor space, and offers its residents an extensive amenities package that includes basketball courts and a playground area. The complex is a community hub, offering resources such as life coaching, job training and a computer lab.
The financing is the second big deal to close within a few weeks for Taconic, who’s experiencing a busy end of the year. In late November, the firm — together with National Real Estate Advisors — closed a $204 million construction loan for 312 West 43rd Street, the joint venture’s luxury residential development in Hell’s Kitchen.
Happy Holidays, indeed.
Officials at Wells Fargo and Eastdil weren’t immediately available for comment.
Cathy Cunningham can be reached at: ccunningham@commercialobserver.com.
