Deutsche Bank Lends $120M on Coney Island Affordable Housing Buy
By Andrew Coen May 30, 2023 4:17 pm
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A joint venture partnership between Tredway, Gilbane Development Company and ELH Management has secured $120 million of acquisition financing to buy a three-building affordable housing development in Coney Island, Brooklyn.
Deutsche Bank (DB) supplied the loan for the JV’s $150 million purchase of the 816-unit Sea Park Apartments from The Arker Companies, according to Tredway.
The complex currently has 916 units with 589 of the apartments set aside for households earning a maximum yearly income of 60 percent of the area median income (AMI); 159 apartments for those earning 50 percent of the AMI; 75 units for up to 80 percent of the AMI; 90 set aside for formerly homeless residents, and three superintendent’s units, according to Tredway.
Tredway and its partners are also slated to build 250 new units of affordable housing at the property for senior citizens. The partnership also will embark on a multimillion-dollar rehabilitation of the entire complex that includes strengthening the buildings’ resiliency and improving energy efficiency.
“This is an opportunity to really provide an impact in a community that needs it,” Will Blodgett, CEO and founder of Tredway, told CO, adding that roughly 20 percent of Coney Island’s population are senior citizens. “This provides real affordability in one of New York City’s most iconic neighborhoods.”
Berkadia originated the loan on behalf of the buyers. Ariel Property Advisors’ Victor Sozio, Shimon Shkury, Benjamin Vago and Remi Mandell arranged the sale on behalf of the sellers.
Tredway’s preservation and creation of the affordable housing at Sea Park Apartments was done with help from the New York State Homes and Community Renewal, the New York State Housing Finance Agency and the New York City Department of Housing Preservation and Development, according to Tredway.
Located at 2930 West 30th Street, 2970 West 27th Street and 2828 West 28th Street, the Sea Park Apartments complex is steps from Coney Island’s boardwalk and Maimonides Park, a baseball stadium that houses the Brooklyn Cyclones, a minor league team affiliated with the New York Mets.
“Right now there has never been a greater need in New York City, New York state and across the country for affordable housing,” Blodgett said.
Officials at Deutsche Bank and Berkadia did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
