Bronx Housing Project Secures $24M Financing

NEW YORK CITY-Affordable housing developer Arker Cos. has finalized financing for an 83-unit project in the Bronx. Daniel Moritz, an Arker principal, tells GlobeSt.com that lining up the $24.4 million in private and public funds to develop Hewitt House Apartments was a taller order than it used to be.

“There is no question that securing financing has become much more challenging in the current economy,” Moritz says. “Credit has gotten much more expensive, tax credit pricing has gone down substantially and only the strongest affordable housing developers have the experience in this market to put together all the financial pieces required to close an affordable housing deal.”

The New York City Housing Development Corp. is providing $11 million in tax-exempt bonds through its Low-Income Affordable Marketplace Program, or LAMP, and about $4.6 million in subordinate financing to Westchester 2 GP LLC, a limited-liability company owned by the Floral Park, NY-based Arker Cos.’ principals. The 73,500-square-foot development–to be located at 886 Westchester Ave. in the Longwood section of the Bronx–is also receiving $7.4 million in tax credit equity from Wachovia Securities. Freddie Mac, through MMA Financial, is providing credit enhancement for a $4.1-million permanent mortgage. Bank of America is participating with a construction letter of credit in the amount of $11.1 million, and is also providing a $2.16-million loan to finance the project’s 11,820-square-foot retail portion.