Affordable New York Communities Trade for $26M
The new owner plans to upgrade the properties and maintain their rent-restricted status.
Lakeview Village. Image via Google Street View
Hudson Valley Property Group paid $25.8 million to acquire two affordable properties totaling 220 units in Spring Valley, N.Y. The owner plans to spend $44 million for the preservation and rehabilitation of Lakeview Village, a 144-unit senior housing property, and Highview Apartments, a 76-unit community.
Lakeview Village sits on 4 acres at 1-167 Lakeview Village, while Highview Apartments occupies less than 3 acres at 105 Fred Hecht Drive. Constructed in 1975, the two buildings encompass a total of 16 studios, 151 one-bedroom, 32 two-bedroom, as well as 21 three- to five-bedroom apartments. At the time of the sale, the average occupancy rate for the two properties was 94.5 percent.
The new owner has applied for Low-Income Housing Tax Credits, expected to close in the following months, a Hudson Valley Property Group representative told Multi-Housing News. Once secured, the funding will go toward rehabilitating the properties. Improvements will gear toward making the communities more energy-efficient, upgrading units, updating community amenities and the security systems.
Lakeview Village is next to Spring Valley Parks & Rec and is within half a mile from the North Main Street retail corridor and Highview Apartments. Additionally, the communities are around 20 miles from downtown White Plains.
Affordability plans
The rent restrictions on the properties were set to expire in 2022. However, the buyer plans to maintain their affordability, filling in a much-needed gap in the affordable housing market. The two properties will serve residents earning up to 60 percent of the area median income.
Red Stone provided acquisition financing, while the purchase was also supported by the U.S. Department of Housing and Urban Development, the Rockland Housing Authority, the Village of Spring Valley and the Town of Clarkstown.
