Phoenix Realty Closes $96M Low-Income Buy

[IMGCAP(1)]NEW YORK CITY-Phoenix Realty Group has closed on its acquisition and renovation of 362 low-income apartments for a total cost of $96 million. All of the apartments will be preserved as affordable housing, and 95% of the apartments will be subsidized with long-term Section 8 contracts from the US Department of Housing and Urban Development.

The property’s seller, Bedford Stuyvesant Restoration Corp., had sought a developer aligned with this mission for several years and agreed to sell this portfolio to PRG because of “their commitment to meeting our goals–stabilizing and revitalizing the portfolio while preserving the affordable housing,” says Colvin Grannum, president of BSRC, in a prepared statement.

[IMGCAP(2)]A source close to the transaction tells GlobeSt.com that the properties included are mostly along Albany Avenue as well as Kingston Avenue, Decatur Avenue, McDonough Street and Herkimer Street. “This acquisition represents our mission to invest in housing critical to the economic vitality of New York City and other major urban areas nationwide,” explains Ron Orgel, a Phoenix Realty Group managing director, in a prepared statement. “Most developers would opt out of the rent restrictions and seek higher-income tenants who could pay more in rent. However, we believe that the preservation of affordable housing is fully worth the tremendous effort and commitment that complicated projects like this require.”