Preservation Development Partners to Rehab Bronx Apartments
- Jan 16, 2014
New York—Preservation Development Partners has acquired Albert Goodman Plaza, a four-building, 252-unit complex in the Bronx for $28.8 million with plans for additional capital improvements. The property contains 105 one-bedroom units and 147 two-bedroom units in four buildings.
The properties had fallen into a state of disrepair under previous ownership. Renovations will include the repair and installation of new roofs, trash compactors, flooring, and facades. Individual units will receive new kitchens and bathrooms, closet doors, paint and light fixtures. The new owners, a joint venture of developers Francine Kellman, Brian Raddock, Donald Capoccia, Joseph Ferrara, and Brandon Baron, will also install a new security system, refurbish laundry rooms, and put in 1,100 new windows.
All of the property’s units were occupied before the transfer of ownership, and no tenants will be displaced during the construction, which is expected to be completed by the summer of 2015. All of the units are for tenants earning up to 60 percent of area median income, or no more than $51,540 annually for a family of four. The project also benefits from a Project Based Section 8 Contract (HAP Contract), which will be renewed for 20 years. The contract subsidizes tenants’ rental payments, and reduces the rent burden to 30 percent of the resident’s income.
The total development cost for Albert Goodman Plaza, which covers the cost of acquisition and rehabilitation, is about $41 million. Financing includes $19.8 million in tax-exempt bonds issued by New York City Housing and Development Corp., with a construction letter of credit provided by the Bank of New York. The State of New York Mortgage Agency will provide mortgage insurance for the $12.3 million permanent loan. The New York City Department of Housing Preservation and Development provided $5.5 million through the HUD Multifamily Preservation Loan Program.
The project also involves the restructuring and partial pay down of the existing HUD debt and the assignment of a $5.6 million HUD mortgage. An additional $14.1 million was provided in Low Income Housing Tax Credits equity via PNC Bank.