$20M Approved for 38-Building Renovation

NEW YORK CITY- Fleet Real Estate Finance Group, a unit of Fleet Bank arranged $20 million in financing for the renovation of Diego Beekman, a complex of 38 buildings with 1,210 apartments within a six-block area in the Mott Haven section of the Bronx. A team consisting of a Diego Beekman-based tenants’ organization, South Bronx Overall Economic Development Corporation, The New York City Housing Partnership, US Department of Housing and Urban Development representatives and others developed the plan for moderate rehabilitation of the complex. The renovations, which include masonry restoration to repair leaks, electrical work and the creation of computer training rooms and day care spaces for tenant are expected to take one to two years to complete with a total development cost for the project of $20 million.

The developer, Diego Beekman Mutual Housing Association (Housing Development Fund Corp.), is a not-for-profit entity formed in 2003 for the acquisition of the Diego Beekman complex from HUD. In compliance with HUD mandates, 75% of the residential units have been earmarked for households with income under $50,240. Current low-income families will receive rent subsidy for five years through the Section 8 program. Since 1998, Fleet has provided some $200 million in financing in the Bronxresulting in over 2,500 units of affordable housing.

“Our hope is that it will serve as the catalyst to ongoing improvement in the entire area,” says Philip Grossman, EVP and market manager, Community Real Estate Finance at Fleet.