Berkadia Provides $71M in Acquisition Financing on $342M Harlem NYCHA Deal

A joint venture between Genesis Companies and Lemor Development Group has secured $71 million in permanent acquisition financing to purchase the Frederick Samuel Apartments, a 42-building, 664-unit affordable housing complex in Harlem. 

The financing comes four months after the new york city housing authority (NYCHA) closed on a $383.6 million Permanent Affordability Commitment Together (PACT) deal with the pair of New York-based developers to rehabilitate and renovate the apartment complex. 

Berkadia managing directors Heather Olson and Matthew Baptiste provided the 30-year loan on the $71 million financing, using Freddie Mac’s Bond Credit Enhancement. As part of the deal, Berkadia agreed to service $93 million in senior debt currently on the property. 

NYCHA, the New York Housing Development Corporation and Goldman Sachs served as Berkadia’s financing partners on the PACT deal, a federal rental assistance vehicle that uses public-private partnerships to finance the rehabilitation and preservation of affordable housing in New York City. 

Berkadia’s Olson called the new acquisition financing for the Frederick Samuel Apartments “a pivotal moment” for all affordable housing in Harlem. 

“With the transformation of more than 660 homes, this initiative will provide much-needed renovations and resources to the community, which will improve the quality of life for thousands of residents in Harlem,” said Olson. 

Located at West 144th Street in Harlem, a historic neighborhood in northern Manhattan that served as the epicenter of Black culture and arts in the 20th century, the Frederick Samuel Apartments opened in 1925 with just 16 units but expanded steadily over the decades. 

The upcoming renovations for the Frederick Samuel Apartments will include new lighting, new flooring, new windows with air conditioning units, free broadband internet, and renovations to the units’ bathrooms and kitchens. Outdoor spaces will see improvements to park spaces, an improved playground and new community gardens. 

“Genesis’ commitment to sustainable community development is at the core of everything we do,” said Karim Hutson, president and CEO of Genesis. “We’re thrilled to enter this new chapter alongside our partners at Lemor Development, NYCHA and Berkadia to bring these investments to fruition for the residents of [Frederick Samuel] and the surrounding Harlem community.”

Brian Pascus can be reached at bpascus@commercialobserver.com.