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BROOKLYN, NY-The Arker Cos. and the Domain Cos. bought the 582-unit affordable housing complex Spring Creek Gardens for $18.3 million. The partnership plans $51.7 million in renovations to redevelop the 6.3-acre site.
With plans to keep the facility affordable, the owners hope to decrease operating costs by incorporating energy-saving products into the complex. The New York State Energy Research and Development Authority and the New York State Division of Housing and Community Renewal will assist with the energy-saving improvements.
The windows, roof, kitchens and baths will all be replaced and the facade will receive improvements. The property, which first held tenants in 1988, has more than 500 units, 905 parking spots, and 14,000 sf of park areas. When under construction, the property was part of New York's 421-a housing tax incentive program. 421-a grants tax abatement to new apartment construction that will contain a certain number of affordable units. The program has just recently been revised and is expected to be signed into law today by Mayor Michael Bloomberg.
With all 582-units remaining as affordable housing, the property falls into the Mayor's New Housing Marketplace Plan that has set goals for the next several years to preserve and create affordable housing for the city's residents.
"To preserve economic diversity, New York City needs work force housing that is affordable," says Alex Arker, principal with Arker, in a statement. "Our ability to help preserve affordability for New York's working families would not have been possible without the outstanding support of both NYC HDC president Emily Youssouf and NYC HPD commissioner Shaun Donovan, and their respective teams."
With the new renovations and the tax-exempt bond financing provided through the New York City Housing Development Corp., the property will remain affordable for at least the next 33 years. "New York City has made an admirable and aggressive public policy commitment to creating and preserving affordable housing," says Matt Schwartz, principal with Domain, in a statement. "By keeping Spring Creek Gardens affordable for decades to come, we are helping the city achieve its ambitious, work force housing goals. Our company takes tremendous pride in delivering top-quality affordable housing for the people of Brooklyn."
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