New York Affordable Housing Property Commands $48M
- Sep 06, 2019
Hudson Valley Property Group has acquired Parkledge, a 311-unit affordable housing community in Yonkers, N.Y., for $48.3 million and is planning renovations to increase energy efficiencies, resident security and quality of life.
CBRE Affordable Housing and CBRE’s New York Institutional Group arranged the sale of the multifamily property. Tim Flint, executive vice president of CBRE Affordable Housing, along with CBRE Vice Chairman Jeff Dunne, Senior Vice President Gene Pride and Senior Financial Analyst Eric Apfel represented the seller in the transaction.
The 4.32-acre property at 220-250 Yonkers Ave. had been owned by Casco Bay Realty LP, an affiliate of the Maine-based affordable housing developer/owner Wishcamper Group, since 2003, according to The Journal News.
There were multiple attractive offers for the asset, Flint said in a prepared statement. Dunne noted Yonkers continues to get strong investor interest because of its proximity to Manhattan and the improvements and redevelopment occurring in the city.
Situated about 20 miles from downtown Manhattan, Parkledge was developed in 1971 under the Mitchell Lama program and the U.S. Department of Housing and Urban Development (HUD) Section 236 program. The property maintains its affordable housing status, which requires 90 percent of the units be kept affordable, under a LIHTC Land Use Restrictive Agreement. The community—which has a mix of one-, two-, three- and four-bedroom apartments—has had occupancy of more than 97 percent since 2016.
Equity for the acquisition was provided by the Hudson Valley Preservation Fund. The new owners also received more than $1 million in tax incentives for the planned renovations from the Yonkers Industrial Development Agency (IDA) in March, according to The Journal News.
HVPG, based in Manhattan, was founded by partners Jason Bordainick and Andrew Cavaluzzi, who were raised in nearby Rockland County in the Hudson Valley. Since its inception in 2010, HVPG has grown its portfolio to more than 4,400 units across New York, New Jersey, Maryland, and Florida. The firm acquires HUD-assisted, tax credit, affordable and workforce housing using conventional funding and Low Income Housing Tax Credits ( LIHTC) to purchase large multi-state portfolios as well as individual assets as small as 50 units. Their properties include a mix of senior and family residences.
In November 2017, HVPG was part of a partnership with The Diocesan Housing Services Corp. of the Diocese of Camden Inc. and MDG Design + Construction to refinance and renovate Victorian Towers in Cape May, N.J. The 205-unit senior housing development received about $8 million in capital improvements. The refinancing enabled the preservation of Victorian Towers as an affordable property for 20 more years.
It was the third joint venture between MDG and HVPG, which had previously completed the preservation and rehabilitation of two low-income HUD housing developments in Brooklyn and North Amityville, N.Y.
In February 2017, HVPG, through a joint venture with Red Stone Cos. and Wheelock Street Capital, acquired a seven-property, 1,009-unit portfolio in New Jersey from Kline Enterprises for $180 million. The properties, a mix of affordable senior housing and family assets, were located in Paterson, Orange, East Orange, Metuchen, Old Bridge, Hazlet and East Windsor, all in New Jersey.