Hudson Companies, BRP Close on $343M Financing to Complete Bronx Housing Development

Residential developers Hudson Companies and BRP Companies have secured $343 million in construction financing for the second phase of La Central, a two-building affordable housing development in the Bronx that will add 420 affordable units, including 63 supportive housing apartments, to New York City, Commercial Observer has learned. 

Red Stone Equity Partners served as the tax credit syndicator, while J.P. Morgan Chase provided credit enhancement. The financing came from a variety of sources that included tax-exempt bonds from the New York City Housing Development Corporation (HDC), a subsidy from the New York City Department of Housing Preservation and Development (HPD), as well as several different tax credits and grants. 

Hudson Companies and BRP are developing the project together with ELH-TKC, an affordable housing developer, and Breaking Ground and Comunilife, a pair of housing support services non-profits. 

“We’re proud to deliver on our commitment to the community, which would not be possible without the support of our financing partners at HPD and HDC and our team of co-developers,” said Marlee Busching-Truscott, managing director of development of the Hudson Companies. 

The closing of the second phase for La Central completes an affordable housing development that has been in the works for more than a decade and will boast five buildings across 1.1 million square feet when completed. 

The earliest aspect of the project, Building D, opened in 2019 at 626 Bergen Avenue with 160 supportive and low-income apartments. The first phase of the project, Buildings A and B, opened in 2021 and added nearly 500 fully affordable, mixed-income apartments to the Bronx neighborhood. The first phase also included a 50,000-square-foot YMCA. 

Aside from the 420 affordable housing apartments in Buildings C and E, Phase II includes a 13,000-square-foot community facility, 7,134 square feet of public garden space, and 1,567 square feet of commercial retail space. 

All in, La Central will deliver five residential and mixed-use buildings holding more than 1,000 affordable housing apartments. 

Andrew Cohen, managing director of development for BRP Companies, said in a statement that the completion of Phase II and the new affordable housing units delivered by La Central represents “a pivotal advancement” in New York City’s fight to address its housing shortage. 

“This strategic investment plays an integral role in expanding equitable housing access at scale, while reaffirming our commitment to sustainable, inclusive and community-driven development that delivers a lasting impact to the communities we serve,” said Cohen. 

Brian Pascus can be reached at bpascus@commercialobserver.com