Longacre JV Lands $141M for Bronx Rent-Stabilized Portfolio
PGIM Real Estate originated the floating-rate refinancing note.
Longacre Group, together with an institutional capital partner advised by FCA Partners, has secured a $141 million, floating-rate refinancing note for a rent-stabilized, affordable housing portfolio encompassing 34 properties in the Bronx, N.Y. Eastdil Secured represented Longacre in the financing proceedings.
PGIM Real Estate issued the debt through its core-plus strategy. The funds will assist in revitalizing and bringing back online a significant number of vacant units in the Bronx, PGIM Managing Director Tom Goodsite said in prepared remarks.
The collection comprises 2,021 units totaling 2.1 million square feet located throughout the northern part of the borough, in neighborhoods such as Kingsbridge, University Heights, Pelham Parkway, Norwood and Wakefield.
READ ALSO: Key Facts About HUD’s Pre-Stabilized Execution
The portfolio’s average apartment size measures north of 1,000 square feet—roughly 250 square feet larger than the Bronx’s average unit size. Rents on average throughout the collection clock in at about $1,500, according to a prepared statement by Longacre Group and PH Realty Capital managing member Peter Hungerford.
Longacre’s Bronx rent-stabilized deals
Last year, a joint venture— then known as Longacre Asset Management—including PH Realty, Alma Realty and Rockledge purchased a 24-asset portfolio across the Bronx and Manhattan for $180 million. Sentinel sold the 1,326-unit collection, which it purchased for about $300 million between 2015 and 2019.
PH Realty and Rockledge also teamed up for another Bronx portfolio acquisition in 2022. The duo purchased a 297-unit collection from Arthur Leeds Real Estate for $33.6 million. What these acquisitions had in common was the rent-stabilized status of the units, which made increasing rates more difficult following the 2019 New York tenant-landlord legislation revamp.
