287 Audubon Ave. in Washington Heights/ Photo credit: Camber Property Group
NEW YORK CITY—Camber Property Group and Belveron Partners purchased three Upper Manhattan buildings for $60 million. With the deal, they preserved affordability for Section 8 tenants at 143 apartments through a 40-year regulatory agreement with New York City's Department of Housing Preservation and Development.
The buyers acquired 287 Audubon Ave. in Washington Heights for $9.5 million from Metropolitan Realty Group; and 107 W. 109th St. in Morningside Heights for $21 million and 1871 Seventh Ave. in West Harlem for $29.1 million, both from the Orbach Group. The developers paid approximately $60 million for the portfolio and received a $40 million bridge loan from Greystone.
1871 Seventh Ave. in West Harlem/ Photo credit: Camber Property Group
The affordability regulations that applied to the properties were scheduled to expire within five years. At that point, the tenants would all have lost protection from rent increases. The deal preserves the affordability for the tenants, all of whom receive Section 8 vouchers.
The Harlem Congregations for Community Improvement is a non-profit partner involved with all three properties. Funded by the developers, the organization will work to provide the tenants access to local services and job training, the developers' spokesperson tells GlobeSt.com.
“We're glad that residents of these buildings will have the peace of mind that their rents won't skyrocket and that they'll be able to live comfortably in their homes for years to come,” says Rick Gropper, principal at Camber Property Group.
107 W. 109th St. in Morningside Heights/ Photo credit: Camber Property Group
“Scarcity of affordable housing in New York makes preserving affordability as important as building new units,” says Louis A. Harrison of Belveron Partners. “Keeping these buildings accessible to current residents helps provide stability to these neighborhoods.”
During a four-month lock-out period, Greystone is simultaneously pursuing permanent HUD-insured financing for the portfolio.
“Financing and preserving affordable housing is at the core of Greystone's mission,” says Leor Dimant, VP, Greystone. “Our bridge loan platform provides competitive terms, and Greystone can execute permanent financing in a seamless process with Fannie Mae, Freddie Mac or HUD.”
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
