Fairstead JV Pays $350M for Affordable Housing Portfolio
The deal is the biggest of its kind in New York City this year.
A joint venture between Fairstead and Invesco Real Estate has purchased a 1,904-unit affordable housing portfolio in the Bronx, N.Y., from Property Resources Corp. for $350 million, according to Crain’s New York Business. The deal is the largest of its kind in New York this year. Ariel Property Advisors brokered the sale, representing both the seller and the buyer.
Both Berkadia and Deutsche Bank provided the joint venture with capital solutions for the acquisition of the 48-building portfolio, which comprises 2.3 million square feet in Longwood, Tremont, Crotona Park and Morrisania.
The partners plan to bring in new capital to the portfolio, through strategic investments that improve the buildings’ sustainability, social services and programming, said Brett Meringoff, managing partner, Development, at Fairstead, in prepared remarks.
Strategy and investment
Fairstead is now the owner and property manager of the 48 properties, which are a mix of five- and six-story existing and newly constructed buildings, some with ground-floor community retail. All the units are operated under a regulatory agreement serving residents earning between 30 percent and 100 percent of the area median income (AMI). Fairstead will preserve the affordability of these units.
Through Fairstead’s Community Impact work, the company will continue to support the longstanding partnership PRC established with the Renaissance Youth Center in Morrisania, and work with local organizations for additional programming.
The Ariel Property Advisors team that brokered the deal included Executive Vice President of Investment Sales Victor Sozio and President Shimon Shkury.
Having invested $500 million in equity commitment for their affordable housing strategy, Fairstead continues to be active in other affordable housing markets, having acquired the 160-unit Gateway in Lake Jackson, Texas, just last week and a 691-unit Newark, N.J., portfolio.