Gilbane-led JV Buys Bronx Affordable Housing Portfolio for $107M

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Four affordable housing properties in the Morrisania, High Bridge and Belmont sections of the Bronx have sold for $107.5 million. 

A joint venture between Gilbane Development Company, Systima Capital Management, ELH Management and TerreAlto purchased the four buildings from Joel Gluck’s Spencer Equity, Crain’s New York Business first reported.

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The properties include 280 East 161st Street, 1105 Jerome Avenue, 101–103 West 165th Street and 2363 Southern Boulevard. The four buildings feature a total of 477 units funded under the U.S. Department of Housing and Urban Development’s project-based Section 8 program, according to brokers Ariel Property Advisors.

Ariel’s Victor Sozio, Shimon Shkury, Jason Gold, Daniel Mahfar and Evan Hirsch arranged the transaction.

“The nature of the offering required us to work with a qualified purchasing group that not only understood the nuances of federally and locally subsidized affordable housing, but who also knew how to navigate the various challenges relating to the market and working with the governing agencies,” Sozio said in a statement. “The sale of this portfolio underscores the continued strong demand for affordable multifamily properties throughout the borough.”

Spencer Equity bought 280 East 161st Street for $14 million in 2010. The purchase dates and prices of the other addresses were not clear in property records, with the latest deed filing going back as far as the 1970s.

The portfolio includes a 525,000-square-foot development site where the JV plans to build more housing, according to Ariel, but the firm declined to provide the address for this property. A source with knowledge of the deal said it was adjacent to 280 161st Street.

Gilbane did not immediately respond to a request for comment, while Spencer Equity could not be reached.

Mark Hallum can be reached at mhallum@commercialobserver.com.