Phase 2 of Brooklyn Affordable Project on Track
A joint venture of The Hudson Cos. and BEC New Communities has closed on the financing and acquisition of BEC Continuum Resyndication, which includes 550 units across 43 properties.
By Keith Loria
The Hudson Companies, in a joint venture with BEC New Communities, has closed on the financing and acquisition of BEC Continuum Resyndication, the second phase of an affordable housing preservation project in Bedford-Stuyvesant and Crown Heights in Brooklyn.
“There’s an appeal for us to continue building our affordable housing preservation practice because one of Hudson’s core values is to develop the housing supply in New York City across the whole spectrum of affordability,” Max Zarin, project manager at the Hudson Companies, told MHN. “The affordable housing crisis can’t be solved through building alone, so acquiring and renovating existing affordable buildings is key—especially in neighborhoods where the market has picked up.”
In total, the second phase is comprised of 550 units across 43 properties, with an additional 13 commercial spaces. All homes will be preserved as affordable housing for families earning 60 percent of area median income or below for at least 35 years. A percentage of the homes will also be designated for formerly homeless households.
EC I, which closed in October, consisted of 212 units across 13 buildings located primarily in Clinton Hill, Crown Heights and Bedford-Stuyvesant.
The scope of work in EC 2 is a bit more ambitious than what is being implemented in phase 1, Zarin said.
“The thing we are most excited about is we are providing brand new kitchens and brand new bathrooms in all units,” he said.
A look at the portfolio
The entire portfolio includes 762 units across 56 properties. Improvements in the properties from both phases will include the repointing of masonry, new windows, and new roofs, as well as replacing outdated boilers and hot water heaters. Improvements are designed to meet the Enterprise Green Communities standards for energy efficiency and environmental sensitivity.
“The critical mass of the portfolio gives us an opportunity to really move the needle in terms of affordable housing preservation,” Zarin said. “The Mayor’s housing plan is to preserve about 80,000 units and it’s rare that you have the opportunity in one project to provide about 1 percent of that.”
Financing for the project is being provided by Richman Housing Resources and Citi Community Capital, with an additional $46.5 million coming from NYC Housing Development Corporation and HPD’s Year-15 LIHTC Preservation Program tax-exempt bonds.
The projected development costs for both BEC Phase I and II is nearly $107 million. Construction is set to begin this summer and completed in fall 2019.
“BEC New Communities is happy to be able to ensure that our residents and the community will continue to have affordable and well-maintained housing for the next few decades,” Dan Matthew, BEC New Communities’ CEO, said. “We are looking forward to working with our partners, the Hudson Companies and Lisa Management, to continue our mission of 30 years of providing affordable housing for the Brooklyn community.”