Developer Duo Lands $82M in Financing for 3 Bronx Communities
Construction on the three affordable properties will wrap up in 2025.
Spaxel and Atalaya Capital Management will be bringing 179 units of affordable housing to the Bronx, N.Y. landing funding to assist with the development of three communities in the New York City borough. The partnership has lined up $81.7 million for the trio of projects, with $30.9 million in equity coming from CBRE Investment Management and $50.8 million in financing from CIT.
Walker & Dunlop’s Aaron Appel, Mo Beler, Jonathan Schwartz, Adam Schwartz, Keith Kurland, Michael Ianno and Triston Stegall arranged the equity and financing on behalf of the developers. The deals closed on April 28, according to Walker & Dunlop. The developers plan to start construction on the communities shortly and expect to finish them in two years.
The three properties will be built as institutional-quality affordable communities, according to Spaxel. Each of the communities is set to be Passive House-certified, seeking to reduce the amount of energy used for heating and cooling. The communities are also part of the now-expired 421(a) program and the Section 8 program.
The property at 2710 Creston Ave. totals 57,400 square feet and will offer 73 units, while also being a block away from St. James Park. Spaxel and Atalaya’s project at 2250 Aqueduct Ave. will include 56 units, totaling 49,950 square feet, and will be located across the street from Aqueduct Walk. The smallest of the three projects, 1751 Monroe Ave., will total 39,950 square feet and 50 units.
Building beyond the East Coast
While Spaxel is a fully-integrated real estate company that can execute acquisitions, development, asset management, construction and property management, it primarily focuses on value-add and new construction opportunities within the affordable and moderate income multifamily segment. For its acquisitions, Spaxel looks for opportunities where it can improve the physical real estate, deploy more efficient infrastructure and enhance the resident experience.
Spaxel targets primary and secondary markets on the U.S.’s East Coast and in the Midwest and Southwest. The company’s portfolio has a large concentration of communities in East Orange and Irvington, N.J., but also several in the Bronx. Spaxel’s portfolio also includes three communities in the Atlanta area, like the 266-unit workforce housing community in Marietta, Ga., which was acquired for $45 million in April 2021.