A partnership of the Acacia Network, Pennrose and the New York City Housing Authority has landed $192.2 million to finance the acquisition and rehabilitation of a 1,321-unit affordable housing portfolio in New York City.
Hunt Real Estate Capital provided the financing, which included two loans—a 30-month and 36-month Unfunded Forward Commitments for permanent, fixed-rate financing in the form of Tax-Exempt Loans for construction financing for the Pennrose Bundle, a collection of NYCHA properties. The two transactions were split into one $118.5 million LIHTC deal and one $73.7 million non-LIHTC deal, both with 30-year terms amortizing over 40 years. Redstone Equity Partners also provided LIHTC equity for the LIHTC partnership.
The units of existing NYCHA public housing are spread across 60 mid-rise and high-rise multifamily properties in the Bushwick neighborhood of Brooklyn and will undergo conversion through HUD’s RAD and Section 18 Disposition programs. Built between 1980 and 1987, the properties range from three to 14 stories tall and include a mix of studio, one-, two-, three- and four-bedroom apartments.
Under the RAD program, NYCHA will transfer the portfolio to a partnership led by the Acacia Network and Pennrose. All of the units included in the portfolio will have a new, auto-renewing, 20-year HAP contract that will be in place at the closing of the deal.
The deal marks the second-largest NYCHA portfolio that Hunt has financed—the first was late last year, when Hunt partnered with Fannie Mae to provide a $120.6 million loan for the Betances New York City Housing Authority RAD portfolio, which includes more than 1,000 units of public housing.