Little Italy Restoration Apartments at 21 Spring Street.
NEW YORK CITY- LIHC Investment Group and Rockport Mortgage Corporation have landed a $74 million FHA Section 223(f) refinancing loan to maintain the affordability of the Little Italy Restoration Apartments located at 21 Spring St. in Manhattan.
At the loan closing, LIHC and HUD entered into a new 20-year Section 8 contract and agreed to further extend the number of years remaining on the prior Section 8 contract. In total, this agreement will extend the property's Section 8 status through 2043.
A portion of the loan proceeds will go to funding the completion of capital improvements for a higher standard quality of life for current residents. This includes upgrades to all kitchens with new granite countertops and stainless-steel appliances. Units will undergo bathroom renovations that include new vanities, medicine cabinets, sinks and faucets, bathtub surrounds and tile flooring. Vinyl plank flooring is slated for installment throughout kitchens, living rooms and hallways.
"We are delighted to use our expertise to preserve LIRA as affordable housing in a community that desperately needs it," said Andrew Gendron, principal at LIHC Investment Group, in a prepared statement. "The suite of improvements and upgrades planned for the property will benefit the many seniors and longtime residents who call LIRA home, while extending the service life of the building. Transactions such as these require the support of many partners, and we'd like to thank our regional HUD office and Rockport for continuing to work with us to preserve affordable housing in the five boroughs."
HUD has continuously prioritized the preservation of affordable housing through FHA preservation programs to assist multifamily property owners in conserving the existing stock of affordable housing, according to Dan Lyons, managing partner of Rockport Mortgage Corporation, in a prepared statement.
"It's well-known that there is a serious shortage of affordable housing stock in the country at this time," he said. "Working closely with a partner like LIHC, who truly understands the benefits of these preservation programs, as well as with the local New York HUD Office, enabled us to secure the long-term affordability of this property."
In addition to apartment unit upgrades, the building's common areas will get a facelift, including door replacements, LED lighting upgrades and common area painting for halls, common spaces, stairwell doors and door frames as a part of the financing.
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
