Related Sells Bronx Affordable Housing Portfolio for $193M
PGIM provided a $141M acquisition loan to buyer Longacre as part of the deal
By Andrew Coen May 20, 2025 6:56 pm
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Related Fund Management has sold a 34-asset rent-stabilized multifamily portfolio in the Bronx for $192.5 million, Commercial Observer has learned.
Longacre Group, a joint venture between PH Realty Capital and Rockledge, was the buyer of the 2,021-unit portfolio called SimplyBetter Affordable Housing that consists of all rent-stabilized units.
“With an average rent of around $1,500, we are proud to support working-class New Yorkers and be stewards of this vital housing product for many years to come,” Peter Hungerford, managing member of Longacre Group and PH Realty Capital, said in a statement. “The Bronx is one of the most densely occupied housing markets in the country, and we’re proud to be part of the solution that supports long-term housing stability for thousands of families.”
Crain’s New York Business first reported the sale but had the incorrect purchase price.
Hungerford told CO the deal involves bringing 264 vacant units back into the rental pool in addition to clearing 3,000 violations across all properties in the portfolio. He noted that the seller leaving 264 units vacant reflects New York State’s “impossible” rules for complying with owning and operating affordable housing properties calling the current system “unsustainable”
PGIM Real Estate provided a $141 million acquisition loan in a floating-rate deal as part of its core-plus strategy, the lender announced Monday.
Eastdil Secured arranged the sale with a team consisting of Gary Phillips, Will Silverman and Daniel Parker. The financing was facilitated by Eastdil’s Ethan Pond.
“We’re proud to provide financing to help revitalize and bring a large number of vacant units back online within this rent-stabilized housing portfolio in the Bronx, given it’s a vital asset supporting the borough’s housing needs,” Tom Goodsite, managing director at PGIM Real Estate, said in a statement. “The Bronx remains a resilient market with strong demand for quality housing that is also affordable, given the area’s steady population growth and constrained supply.”
The affordable housing portfolio sold by Related includes properties in the northern Bronx including 2100 Bronx Park East, 316 East Mosholu Parkway and 2780 University Avenue. The properties spanning 2.1 million square feet are in the neighborhoods of Kingsbridge, University Heights, Pelham Parkway, Norwood and Wakefield.
The rent-stabilized properties were unloaded six years after New York State passed a 2019 law called the Housing Stability and Tenant Protection Act that restricted increases on rent-regulated apartments. The law has been blamed by CRE property owners for cutting the valuations of rent-regulated buildings by 30 to 50 percent since 2018, CO reported in 2023.
Allowable rent increases in pre-1974, rent-stabilized buildings in the Bronx between 2010 and 2023 fell short of what is needed to cover increased operating costs and inflation by roughly 1 percent per year, according to testimony provided by Mark Willis, senior policy fellow at the New York University Furman Center on April 10 before the New York City Rent Guidelines Board.
Officials at Eastdil did not immediately return a request for comment. Related declined to comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
