Greystone Provides, Arranges $98M Refi for East Harlem Affordable Housing

Metropolitan Realty Group has secured $97.6 million to refinance Villa Hermosa Apartments, a 272-unit affordable housing apartment complex in East Harlem, Commercial Observer can first report. 

Greystone provided the non-recourse financing, which is insured by the federal Department of Housing and Urban Development (HUD) under section 223(f) and carried a 35-year term along with a fixed interest rate. Greystone’s Eric Rosenstock and Jeff Englund also arranged the transaction. 

The building is covered by a 20-year Housing Assistance Payments contract from HUD’s Section 8 program that will provide vouchers and allow ownership to secure stable rental income for the next two decades. 

Moreover, proceeds from the loan will finance renovations to units and tenant improvements across the building. 

Rosenstock said in a statement that the new financing will keep an affordable housing asset in place in “one of Manhattan’s most supply-constrained neighborhoods.”

“Our HUD execution allowed us to structure long-term, stable financing that supports the sponsor’s mission of maintaining high-quality affordable housing while investing meaningfully into the property’s future,” he added. 

Located at 1600 Madison Avenue — or conversely 21-23 East 107th Street — at the north end of Central Park, Villa Hermosa Apartments opened in 1910 and features three buildings with 272 one- to three-bedroom units. The buildings’ rents are income-restricted to 50 percent area medium income. 

Scott Jaffee, CEO of Metropolitan Realty Group, described the new refinancing as an “exceptional long-term” deal that will help the sponsorship make large-scale upgrades. 

“Our commitment to Villa Hermosa spans decades, and this refinancing ensures we can continue delivering safe, dignified and modern housing for the families who call this community home,” he added.

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