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NEW YORK CITY-A joint venture of the Arker Cos. and Westbury Realty will spend approximately $50 million to develop nearly 300 units of affordable housing here. Debt financing just closed on the third parcel involved.
Longview Capital Advisors, which secures debt and equity financing for middle market developers, put the partners together. Westbury Realty, an owner and manager of parking and retail properties, had the parcels in the Bronx and the Inwood section of Manhattan in its portfolio. Longview had arranged first mortgage financing two years ago. Longview also had worked with Arker, which has created more than 3,600 housing units and nearly one million sf of commercial space. Longview had secured acquisition financing for the company on another project.
"Westbury preferred not to sell the properties, nor did the company want to be part of a development," explains Mitchell Draizin, Longview president. He brought Westbury together with Arker in the joint venture through the use of long-term lease arrangements.
Approximately $5.3 million in debt financing was provided by the New York City Housing Development Corp. and underwritten by Merrill Lynch. This is earmarked for development of a parking lot at 1471-1439 Ogden Ave. in the Bronx. On behalf of Westbury, Longview structured and negotiated a 99-year ground lease with Arker for each of the three properties. The other two properties are located at 1434 Ogden Ave. in the Bronx and at 228-238 Nagle Ave. in Inwood. When completed, the project will provide a total of 289 units of affordable rental housing and 25,000 sf of commercial space. At 1434 Ogden, plans are for an eight-story, 130,000-sf building with 130 studio and one-, two- and three-bedroom units, and 10,000 sf of ground floor commercial space. A 104,000-sf building will be developed at 228-238 Nagle, with 100 studio and one- and two-bedroom apartments, as well as 12,000 sf of commercial space. 1471 Ogden will have 59 units and 3,000 sf of commercial space.
"These properties presented a real opportunity for us to add to our inventory of affordable housing," says Sol Arker of the Arker Cos. He adds that Longview also helped secure air rights for the project at 1471-1439 Ogden the appropriate density could be achieved at that location."
The rents for Ogden, Ogden II and Nagle, all set aside for residents at 55% of median income, are $562 for a studio, $600 for a one-bedroom unit and $723 for a two-bedroom. Construction has started with anticipated completion within 19 months.
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