Tredway, ELH Buy $110M Brooklyn Affordable Housing Portfolio
The seven properties, located in the Fort Greene neighborhood, include a to-be-renovated building for seniors.
Tredway and ELH Mgmt have acquired a seven-property affordable housing portfolio with 193 apartments in the Fort Greene neighborhood of Brooklyn, N.Y. The companies plan to upgrade them for $110 million and keep them affordable for another 40 years.
The buyers received a $97 million Freddie Mac loan from Wells Fargo. The sellers of the portfolio were the Schnay family, including developers Abe Schnay, Martin Schnay and Scott Schnay, according to the Commercial Observer.
Tredway and ELH are also investing $10 million in upgrades across the portfolio, which has been largely untouched since it was built in the early 1980s. Special attention will be given to Greene Clermont Houses at 80 Greene Ave., a 97-unit senior-designated building. The mid-rise building will receive critical aging-in-place retrofits aimed at enhancing the residents’ quality of life.
Plans for Greene Clermont Houses include a redesigned indoor and outdoor community space, a new wellness center that will allow for onsite vaccination and nursing services, as well as office space for a resident services coordinator. The Jericho Project, a national nonprofit, will provide social services with an emphasis on housing retention as well as age-appropriate programming.
Upgrades to come
The remaining buildings in the portfolio are known as Tri-Block Houses Apartments. They are located at 36 Fort Greene Place, 56 Fort Greene Place, 35 St. Felix St., 42 St. Felix St., 51 St. Felix St. and 221-225 Ashland Place.
All the properties will receive new kitchens, bathrooms, lighting and flooring and lobbies. Common areas will also be refreshed. The developers plan to improve energy efficiency throughout the portfolio and make safety improvements to facades under Local Law11.
The apartments will serve low-income households earning no more than 50 percent of Area Median Income. An additional 30 percent of the units will be reserved for formerly homeless individuals and families.
The sale was brokered by Andy Daitch and Matt Kurzmann of Affordable Housing Advisors.
Earlier deals
Tredway and ELH, both based in New York City, have worked together in the past. In June 2023, Tredway partnered with ELH and Gilbane Development Co. to acquire Sea Park Apartments in Brooklyn’s Coney Island neighborhood from Arker Cos. for $150 million, with plans for a multimillion-dollar rehabilitation for the affordable housing complex. The property had 816 units of housing for residents of various income levels including 90 apartments that were slated to be set aside for formerly homeless residents. Tredway also planned to add 250 units of affordable senior housing to the existing Sea Park North building.
Earlier this year, Tredway and Sena Affordable Communities, an affiliate of L+M Fund Management, received $68 million in new financing to renovate Riverview Towers Apartments, a 225-unit affordable senior housing property owned by LIHC Investment Group and LNWA in Camden, N.J. LNWA originally developed the property in 1977. The funding, financed with Low-Income Housing Tax Credits, will allow the property’s affordability to be extended for an additional 30 years.
