Bronx and Manhattan Affordable Housing Complexes to Get $190M Upgrades
By Mark Hallum March 9, 2022 2:59 pm
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Hudson Valley Property Group (HVPG) closed a $190 million recapitalization to upgrade three apartment complexes in New York City, while preserving the affordability of the 748 units.
The recapitalization will include upgrades and renovations to the Bronx’s Keith Plaza at 2475 Southern Boulevard and Kelly Towers at 2405 Southern Boulevard, along with Los Tres Unidos Apartments at 1680 Madison Avenue in Manhattan. The preservation process will not displace any tenants, according to HVPG.
The two Bronx developments were built under the Mitchell-Lama program in 1975 and were acquired by HVPG in 2015. They will receive $104.9 million from the recapitalization, which will extend their affordability for another 15 years.
“In high-cost markets like New York, it is essential to ensure housing stays affordable across a broad spectrum of incomes,” Jason Bordainick, co-founder of HVPG, said in a statement. “This ensures families can build strong, lasting communities and the city can attract and maintain the vitality and diversity that make it so special.”
Phoenix Realty Group will remain a partner in the operation of these two Bronx developments.
Los Tres Unidos Apartments, a 135-unit complex that HVPG operates with NERVE, NCV Capital Partners and Nuveen as partners, will be the recipient of $85.1 million of the recapitalization funds for property improvements such as sidewalk and ground repairs, roof replacements and free Wi-Fi for tenants. HVPG acquired the property in 2017.
“Nuveen’s business plan includes the implementation of a sustainable, social impact program for the residents of Los Tres to promote health and wellness and financial empowerment to achieve better outcomes with a focus on closing the wealth gap,” Pamela West, managing director of Nuveen’s real estate impact investing group, said in a statement.
The recapitalization was secured through additional debt financing from the New York City Housing Development Corporation.
Mark Hallum can be reached at mhallum@commercialobserver.com.
