TODAY’S DEALS: Rose Smart Growth Investment Fund Acquires 198 Affordable Housing Units in Harlem, and Other Transactions
- Jan 29, 2009
By Anuradha Kher, Online News EditorNew York–The Rose Smart Growth Investment Fund I has acquired 198 units of affordable housing and approximately 4,500 sq. ft. of ground floor retail space at 107-145 West 135th St. (pictured) in Harlem for $26.5 million. While the project’s U.S. Department of Housing and Urban Development (HUD) Section 8 contract was set to expire at the end of last year, the fund worked with HUD to obtain an interim renewal at acquisition, and lay the groundwork for a new 20 year contract to preserve the affordability of the project long term. As the new owner, the fund plans to rehabilitate the property with a green capital investment program that will create a more energy efficient apartment community.“Income diversity is essential to healthy communities, and as Harlem gentrifies, the preservation of affordable housing is very important,” says Nathan Taft, director of acquisitions for Jonathan Rose Cos. “There is a real opportunity to create green, energy efficient homes that will greatly improve the lives of the current residents of these buildings. We are committed to preserving the affordability for residents, while enriching and revitalizing the community, and greatly appreciate the support of our lender and the public agencies that helped make this acquisition possible, including HUD, HPD, HDC and the Housing Partnership Development Corp.”The Rose Smart Growth Investment Fund I financed the purchase through an acquisition loan from the New York City Acquisition Fund (NYAF), which provides acquisition and predevelopment loans to developers committed to the creation and preservation of affordable housing in the five boroughs of New York City. NYAF was established through the collaboration of the City of New York, major foundations, and New York’s banking industry. The asset is comprised of 10 identical, neighboring, six-story elevator buildings located directly across the street from the historic Harlem YMCA and in close proximity to the New York Public Library’s Schomburg Center for Research in Black Culture, Harlem Hospital and several subway lines. The residential units are 98 percent occupied.Hendricks & Partners Arranges Sale of 34-Unit Rental Community for Over $7MBurbank, Calif.–Hendricks & Partners has recently arranged the sale of Verdugo Gardens, a 34-unit apartment community in Burbank, Calif., for $7,262,500 at a 4.65 percent cap rate with in place rents. Located at 275 West Verdugo Ave. and built in1985, Verdugo Gardens features two- and three-bedroom units. The buyer, a non-profit group called Burbank Housing Corp. will provide affordable housing and upgrade the building. PNC ARCS Closes $5M Loan for Seniors Housing CommunityRiverside, Calif.–PNC ARCS recently closed a $5 million loan for the Creekside Senior Apartments, a 152-unit senior housing property in Riverside, Calif.Built in 1991, Creekside Senior Apartments is a garden-style complex comprised of nineteen one-story buildings sprawled over seven acres of land. The facility is restricted to those 55 years of age or older. The loan was for a 10-year term/30-year amortization at a fixed rate of 6.2 percent. The loan was originated by PNC ARCS’ Calabasas Hills office through Fannie Mae.