JV Takes Bronx Site for $100M

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NEW YORK CITY-Apollo Real Estate Advisors teamed with nonprofit developer Housing and Services Inc., Ramius Capital Group and Morgan Stanley Mortgage Capital Inc., to acquire Lafayette Morrison and Lafayette Boynton Housing Corps. in the Bronx for approximately $100 million. In the Soundview section of the borough, the complex features eight 19-story apartment buildings with 1,865 residential units. The properties contain 1.4 million sf of residential space.

The partners plan to convert the properties to affordable cooperatives. According to James Simmons, partner at Apollo, conversion costs will be approximately $10 million which will include about $7 million in capital improvements for hallways, landscaping and facade work. For insiders, units will be marketed as is. For new buyers, there will be a moderate level of capital improvements, he says. The conversion will be accomplished in two phases. Apollo anticipates that half the units will be marketed by the end of 2006 and the other half by the beginning of 2008.