HVPG Purchases East Coast Portfolio
The affordable properties total 1,140 units at five locations.
Hudson Valley Property Group has acquired a portfolio of five affordable housing communities in the Mid-Atlantic and southeast. The properties, totaling 1,140 units, include the company’s first foray into North Carolina, and an expanded footprint in the Mid-Atlantic and Washington, D.C. area.
HVPG intends to spend approximately $13 million on initial renovations across the five multifamily communities. Improvements will include site infrastructure improvement, as well as safety improvements to in-unit bathrooms and kitchens. Affordability will be extended an average of 29.5 years portfolio-wide, the company said in a statement.
“This was a complex, multi-state portfolio involving several different agencies, various regulatory approvals, different property types with distinct capital needs and an expedited closing timeline,” Jason Bordainick, co-founder and managing partner of Hudson Valley Property Group, told Multi-Housing News. “We have a robust, best-in-class platform with both the know-how and capital, backed by a deep track record for handling transactions of this type. This enables us to be the preferred buyer for owners exiting portfolios who require certainty of execution.”
Secured agreements
Four of the properties are located in Prince George’s and Montgomery counties, Md.: the 528-unit Rock Creek Terrace in Rockville, Md., the 96-unit Central Gardens, in Capitol Heights, Md., the 77-unit Millwood Townhomes in Capitol Heights, Md., and the 287-unit Pleasant Homes in Seat Pleasant, Md. The 150-unit Village Square community is located in Gastonia, N.C.
To help ensure long-term affordability, HVPG secured new or assumed existing governing regulatory agreements for each of the properties with agencies including the U.S. Housing Urban & Development, the county government of Prince George’s County and Fannie Mae, extending affordability by an average 29.5 years across the portfolio.
The acquisition and property rehabilitations are financed from HVPG’s latest fund, as well as debt financing from Fannie Mae arranged through JLL. Last month, Middleburg announced plans to build a Wilmington, N.C. single-family rental community called Hamlet Barclay West.