NEW YORK CITY–The Albert Goodman Plaza Apartments, an affordable housing complex in the Morrisania section of the Bronx, has sold for $23.8 million, GlobeSt.com has learned EXCLUSIVELY. The 292,925-square-foot portfolio was bought by Preservation Development Partners and sold by Excel Bradshaw Management Group.
Both parties to the deal were represented by a team from Besen & Associates consisting of Amit Doshi, Lynda Blumberg and Shallini Mehra. The portfolio includes four elevator apartment buildings containing 250 apartments and two commercial units.
Constructed in 1982, the buildings are operated under a project based Section 8 HUD contract. Under the Project Based Section 8 contract, the apartments will remain affordable for another 20 years. The new landlords plan to invest approximately $8.8 million in capital improvements. The sale price equates to a 7.4 gross rent multiplier, $94,450 price per unit, $81 per square foot, and a 6.5% capitalization rate.
Included in the property are 970 Boston Rd. (also known as 3250 Third Ave., 621 & 571 E. 163rd St.), and 665 E. 163rd St. The complex occupies much of the entire block. Three of the buildings are part of one block and lot (3250 Third Ave., 621 and 571 E. 163rd St.), with the fourth building is located across the street (665 East 163rd).
The three six-story buildings have an aggregate of 181,500 square feet within a lot spanning 137,833 square feet. They contain 185 residential units, a 2,000 square foot office, and 1,575 square foot retail space. The commercial units are occupied by a physician's office and pharmacy. 665 E. 163rd is a five-story, 111,425-square-foot elevator building with 63 apartments located on the northeast corner of east 163rd street and Trinity avenue. Existing financing on the property included a private mortgage as well as second and third HUD loans due in 2024.
“We are pleased to have been a part of this challenging transaction,” says Doshi. “The purchaser is a highly competent operator who continues to deliver on the mission of preserving much-needed affordable housing in New York.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
