Tredway Acquires Far Rockaway Affordable Housing Asset From Related for $88M

Tredway has acquired an affordable housing complex in Far Rockaway, Queens, for $88 million from Related Companies, Commercial Observer has learned.

The affordable housing and mixed-income multifamily developer purchased the 602-unit Ocean Park Apartments at 125 Beach 17th Street in a deal that closed Tuesday afternoon, according to Tredway. 

The seller was not revealed, but a website for the property shows Related as the owner. 

Concurrent with Tredway’s acquisition, the firm closed a new regulatory agreement with the city’s Department of Housing Preservation and Development (HPD) to designate all the property’s apartments as rent-stabilized. The deal with HPD also extends the designation of 423 of units at 60 percent area median income (AMI) with 179 units at 80 percent AMI.

“We are pleased to take on the stewardship of Ocean Park and to execute a preservation that significantly strengthens the property’s affordability while providing for critical capital repairs, energy-efficiency improvements, and expanded social services,” Will Blodgett, founder and CEO of Tredway, said in a statement. “The institution of rent stabilization at Ocean Park will protect current and future residents from rapidly rising rental prices and maintain the property as a beacon of opportunity for the entire Far Rockaway community.”

Ariel Property Advisors brokered the sale with a team consisting of Victor Sozio, Shimon Shkury, Remi Mandell and Jake Brody.

Merchants Capital provided an acquisition loan for an undisclosed amount to finance the transaction originated by Mathew Wambua and Mike Milazzo, according to Tredway. 

The 1972-built Ocean Park property, which was developed under New York City’s Mitchell-Lama program, has experienced deterioration over the decades due exposure from its beachfront location and salt spray, according to Tredway. The developer said it is planning a substantial rehabilitation for the complex that includes a new roof, window weatherization and replacing the parking deck.

Community amenities at Ocean Park include a swimming pool, playgrounds, a community room and over 9,000 square feet of retail space.

“This sale represents an exciting new chapter for the property, one that will see continued responsible management coupled with vital capital improvements,” Sozio, founding partner, at Ariel Property Advisors, said in a statement. “I’m proud to have played a role in a transaction that prioritizes both affordability and the long-term well-being of the community.”

Merchants Capital and Related Companies did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com