TODAY’S DEALS: The Richman Group Closes $291M in Affordable Tax Credit Funds

The Richman Group to add 3,000 affordable units to its portfolio; Quantum Capital arranges $19.3 million in financing for a San Diego portfolio; and Ariel Property brokers the sale of a five-building portfolio located in Queens, N.Y., for $38 million.

Greenwich, Conn.—The Richman Group Affordable Housing Corp. has closed two institutional affordable housing tax credit funds totaling $291 million in equity. The group first closed a $166 million fund, U.S.A. Institutional Tax Credit Fund LXXXIX L.P. Fund 89 includes a portfolio of properties located in 18 states. The investor base is comprised of eleven institutions comprised of insurance companies and banks.

Richman also closed a $125 million fund known as U.S.A. Institutional Tax Credit Fund XCV L.P. Fund 95 had four institutional banking institutions as investors and will acquire affordable housing tax credit projects in New York City’s five boroughs.

Together, the two funds will add more than 3,000 units to Richman’s current portfolio, which exceeds 105,000 units.

Quantum Capital arranges $19.3M San Diego refinance

San Diego—Finance and advisory firm Quantum Capital Partners has negotiated $19.3 million in financing for a private investor’s 183-unit, seven-property portfolio located in San Diego. The package is composed of seven separate self-liquidating loans with a 3.97 percent interest rate fixed for five years before floating over LIBOR for the remainder of the 30-year term. The portfolio features garden-style, low-rise and luxury properties that average 96 percent occupancy.

“There was a significant amount of competition among lenders to finance this portfolio,” says Jonathan Hakakha, managing director at Quantum Capital. “Quantum was able to provide the most favorable terms to the borrower by leveraging the company’s strong banking relationships and market expertise.”

Ariel Property brokers sale of a five-building, Queens portfolio for $38M

New York—Ariel Property Advisors has announced the sale of Metropolitan 1, a five-building, 311-unit multifamily portfolio in the Elmhurst section of Queens for approximately $38 million.

The Queens portfolio consists of four, six-story elevator buildings and one, four-story walk-up totaling approximately 234,830 square feet. The properties are located at 41-23 Gleane Street, 37-52 89th Street, 43-23 Ithaca Street, 40-94 Denman Street and 91-31 Lamont Avenue.

The five-building portfolio, marketed by the Ariel Property Advisors team of Michael A. Tortorici, Shimon Shkury, Victor Sozio, Randy Modell and Jonathan Berman, was one of two Queens packages sold in this transaction by the seller, a real estate investment group. BRG purchased the two portfolios for more than $68 million.

“It’s rare to see multifamily properties, especially elevator buildings, in great neighborhoods like this change hands in Queens,” says Shimon Shkury, president of Ariel Property Advisors. “This package is a testament to the strength of the borough from the point of view of both institutional and private clients. So far, 2013 is shaping up to be a record year for Queens in terms of the velocity and pricing of multifamily assets.”

Located in the vicinity of Roosevelt Avenue, the five buildings are a short walk to either the 7 train on Roosevelt Avenue or the M/R train at Elmhurst Avenue.


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