Jonathan Rose Cos. has teamed with the NHP Foundation and Nuveen to acquire Shore Hill Housing, a two-building HUD project-based Section 8 Housing community in Brooklyn for around $150 million. The seller was NYU Langone, a hospital system affiliated with New York University.
“The complex is appealing because of its size, scale, and location as well as the fact that it is in good condition due to NYU’s stewardship,” Nathan Taft, Jonathan Rose Cos.’ partner and managing director of acquisitions, told Multi-Housing News. “For Rose’s part, our company investment philosophy prioritizes well-located, urban assets that afford residents convenient access to high-opportunity neighborhoods, and in this case, allow senior residents to age in place. This acquisition is a great endorsement for our equity funds that enable us to do preservation without LIHTCs when necessary.”
Located at 9000 Shore Road in the Bay Ridge section of Brooklyn, the community consists of two interconnected 14-story towers totaling 414,127 square feet situated on 2.69 acres. The buildings offer 325 studios and 233 one-bedrooms.
“For the past 30 years, NHPF’s mission has been to preserve and increase service enriched affordable rental housing for low to moderate income residents, so this opportunity to partner with Jonathan Rose Companies on a senior property perfectly aligns,” Mecky Adnani, NHPF’s senior vice president of acquisitions, told MHN. “We are both committed owners looking to preserve properties long-term and the Shore Hill deal marks the first of three properties we will preserve with the Rose Company.”
Capital Improvements in the Plans
Originally built in 1977, Shore Hill Housing will undergo a vast capital improvement program, which will increase energy efficiency, reduce its carbon footprint and enhance the resident services as part of Rose’s Communities of Opportunity programming.
“The Fund will invest $3 million in capital improvements, largely to increase energy efficiency, reduce the property’s carbon footprint and enhance the resident services at Shore Hill as part of our company’s Communities of Opportunity programming,” Joshua Plattner, Jonathan Rose Cos.’ senior manager of investments, for who led this acquisition team, told MHN.
Shore Hill Neighborhood Center for Older Adults has a long history of providing an extensive continuum of services to their residents and Operation Pathways, an affiliate of NHPF is committed to ensuring that residents continue to receive high quality, innovative and effective programs that help them stay healthy and active as they age.
A $102 million Freddie Mac loan arranged through Prudential helped finance the deal. Rose Community Management will manage the community.
Earlier this month, KeyBank Real Estate Capital provided $64 million through FHA’s 223(f) insurance program for Jonathan Rose Cos. to refinance and rehabilitate Grace West Manor Apartments, a 429-unit senior housing community in Newark, N.J.
Image courtesy of Jonathan Rose Cos.