Iris JV Secures $75M for 506-Unit Affordable Queens Portfolio

National Equity Fund provided the financing.

Property 137-20 45 Ave., Flushing, N.Y.
The Auburn is the only property in the portfolio not on Colden Street. Image courtesy of Yardi Matrix

Iris Holdings Group has secured a $75 million acquisition and rehabilitation loan for four assets in Flushing, N.Y. The new owner partnered with the New York City Department of Housing Preservation and Development to renovate the 506-unit portfolio and maintain its affordability status.

LeFrak Organization sold the assets, according to Yardi Matrix data. National Equity Fund provided the financing.

The partnership plans to preserve the varying levels of affordability throughout the next 40 years. Renovations will include energy efficiency upgrades, as well as major system improvements.

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Built between 1962 and 1963, the four buildings encompass 481,000 square feet. The unit mix features studio, one- to three-bedroom floorplans that range from 425 to 1,245 square feet. The Notre Dame, The Tulane, The Auburn and The Bucknell rise between six and seven stories.

The properties are at 44-15, 45-15 and 44-35 Colden St. and 137-20 45 Ave., within walking distance of each other. Downtown Flushing is roughly 1 mile northwest, while Manhattan is some 11 miles southeast of the communities. Several transit options, quick-service restaurants and retail are near the buildings.

National Equity Fund’s partnership with Iris Holdings Group

In prepared remarks, NEF Vice President Mark Migliacci underscored the LIHTC syndicator and asset manager’s long-term collaboration with Iris. Last year, NEF provided $12.5 million in refinancing for Iris’ The Jefferson MacDonough Portfolio, a 56-unit workforce housing development in Brooklyn, N.Y.

The year before that, NEF issued a $76 million refinancing loan for The Seaview Estates, a 316-unit, 255,000-square-foot affordable property in Staten Island, N.Y. Iris spearheaded the preservation and renovation efforts.

Investors’ affinity for market-rate Queens assets

In 2023, investors traded $126 million in multifamily assets in Queens, which is in tune with the yearly registered sales going back to 2019, according to a recent Yardi Matrix report.

Notably, since 2014, the working-class Renter-by-Necessity segment garnered more popularity among investors, as 49 such properties traded up until last year. Only eight Lifestyle communities changed hands during the same period, the report goes on to show.

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