Wells Fargo Deploys $256M on Staten Island Affordable Housing Renovations
New York City Housing Authority and BFC Partners leading upgrades project at West Brighton complex.
By Andrew Coen July 2, 2024 2:18 pm
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Wells Fargo has supplied $256 million of financing as part of a $332.3 million funding package that will help renovate a Staten Island affordable housing complex, Commercial Observer has learned.
The investment banking giant originated the debt pon the New York City Housing Authority’s (NYCHA) West Brighton I and II property through its community lending and investment (CLI) and multifamily capital (MFC) groups. The project involves the rehabilitation of 574 apartments, and reactivation of 24 vacant units, with 12 restored as permanently affordable and the rest converted into senior housing.
NYCHA is partnering with BFC Partners, CB Emmanuel Realty and nonprofit group Catholic Homes New York on the renovations. Pinnacle City Living will become property manager once the project is completed, with Housing Opportunities Unlimited coordinating social services.
“This was a collaborative effort amongst multiple groups within the bank,” Alex Yulfo, managing director and head of affordable production in Wells Fargo’s multifamily capital group, said in a statement. “Wells Fargo is proud to be a part of the revitalization of a historic housing resource in the West Brighton neighborhood of Staten Island.”
The renovations of the West Brighton property will mark the first project on Staten Island completed through NYCHA’s Permanent Affordability Commitment Together (PACT) program, according to BFC Partners.
In terms of the financing breakdown, Wells Fargo’s CLI group provided an $86 million historical tax credit investment, a $55 million construction bridge loan and $27 million letter of credit. It was Wells Fargo’s first time closing a NYCHA PACT Historic tax credit deal.
Then, the Wells Fargo MFC team supplied an $88.1 million permanent loan that includes a $79.3 million Freddie Mac (FMCC)-backed enhancement and $8.8 million New York City Housing Development Corporation enhancement.
Finally, the West Brighton project also secured $21.3 million of additional historic tax credits and $55 million of sponsorship equity.
“We applaud NYCHA for its first financial closing on Staten Island and are so proud to be working hand in hand with NYCHA and the PACT team partners on this transformational project,” Joseph Ferrara, principal of BFC Partners, said in a statement. “The significant upgrades and overhaul of building systems throughout West Brighton will improve the quality of life for both current residents and future generations of Staten Islanders.”
The Staten Island Advance was first to report the funding, but did not have the breakdown of the financing.
“With the closing of West Brighton, we’re officially bringing the PACT program to Staten Island,” NYCHA CEO Lisa Bova-Hiatt said in a statement. “The PACT program has been an invaluable resource for NYCHA to unlock funding and considerably improve residents’ quality of life, and we could not be more pleased to have expanded into all five boroughs.”
Wells Fargo did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
