JV Lands $225M For Affordable Bronx Development
The financing will back 983 units at 18 buildings.
Starhill. Image courtesy of the New York Governor’s press office
The New York City Housing Authority Permanent Affordability Commitment Together Union Avenue Consolidated project, or PACT, has obtained $225 million in financing to support a large-scale refinancing and rehabilitation of seven affordable housing developments. Collectively, those developments encompass 18 buildings and a total of 983 apartments.
Merchants Capital’s Freddie Mac Capital Markets Execution, or CME, loan will be used to refinance and rehabilitate the apartment units. Building-wide improvement plans will include upgrades of kitchen counters, appliances and cabinets. The rehabilitation will also encompass plumbing enhancements and maintenance of common areas.
Social services
Capital needs and repair expenses, from heating infrastructure to security improvements, will also be covered by the financing. The funds will also provide for the implementation of a social services program customized to individual needs of the Union Avenue community. Affordability will be preserved, as will residents’ rights and protections. Commencing in October 2023, construction work is expected to be complete in September 2025.
Three entities comprise the Bronx Housing Preservation Experience joint venture: The Arker Companies, Dabar Development Partners and SBV RE Investments, formerly Omni NY. Along with Merchants Capital, these sponsors have logged significant experience in working with NYCHA, including in the collaboration on the NYCHA PACT Brooklyn Bundle II. This earlier project undertook substantial repairs and renovations to nine Brooklyn developments.
Most recently, Merchants Capital furnished $320 million to support comprehensive renovations at Edenwald House, the state’s second largest NYCHA property. Two months ago, Phase I of a $189 million affordable development to provide 326 units topped out in the Bronx.
