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Asland Capital Partners and Pembroke Residential Holdings secure $100M of construction financing for 154-unit affordable senior apartment project in NYC

Asland Capital Partners (“Asland”) and Pembroke Residential Holdings (“Pembroke”) have secured $100 million in financing to begin the development of 1940 Turnbull Avenue, a 154-unit affordable residential property located in the Soundview Neighborhood of The Bronx, New York.

The 14-story project, scheduled for completion in fall of 2024, will be designated for seniors aged 62 years or older, with 30% of the units set aside for seniors who were formerly homeless. This investment is also part of Goldman Sachs’ One Million Black Women initiative, a $10bn investment strategy to narrow opportunity gaps for Black women in the next decade across key pillars including the financing and preservation of quality affordable housing.

Project partners include Asland, Pembroke, the Urban Investment Group within Goldman Sachs Asset Management (Goldman Sachs), New York State Homes and Community Renewal (“HCR”), and New York City Department of Housing Preservation and Development (“HPD”).

A construction loan was procured through a combination of both taxable and tax-exempt bonds issued by the New York State Housing Finance Agency, with credit enhancement in an equal amount provided by Goldman Sachs. Goldman Sachs is also providing tax credit equity with HPD providing an additional subsidy.

“Since the founding of Asland in 2019, our team has worked diligently to make this project a reality. We are excited to play a leading role in this major development in the Soundview section of the Bronx, an area where I have worked in to preserve 2,500 units of affordable housing over the past 15 years. 1940 Turnbull Avenue brings desperately needed dedicated Affordable Senior Housing to the neighborhood and provides excellent accessibility to the amenities the neighborhood has to offer,” said James H. Simmons III, CEO & Founding Partner of Asland Capital Partners.

“We are thrilled to work with Asland and Goldman Sachs to develop high-quality affordable housing for Seniors, a vulnerable demographic that continues to be underserved throughout New York City,” said Josh Siegel, Head of Development for Pembroke Residential Holdings. “We especially appreciate the hard work of our partners in government, HPD and HCR, who share our dedication to the Bronx and are critical in providing much-needed housing that will enhance the quality of life for many seniors while fostering continued vitality for the neighborhood.”

“Diverse communities like Soundview have been particularly hard hit by the housing crisis, making projects like this, which is providing much-needed, quality, affordable, senior housing, absolutely essential,” said Dan Alger, co-head of the Urban Investment Group within Goldman Sachs Asset Management. “We are excited to participate in this project alongside our public and private partners as we deepen our commitment to The Bronx.”

The project’s focus on obtaining LEED Gold designation affirms the importance of Environmental, Social, and Governance initiatives to the project’s partners. Key sustainability features expected to be included in the project are low-flow water fixtures, a high-performance building envelope and a green roof. Further, the development team has partnered with Selfhelp Community Services Inc. (“Selfhelp”) to provide dedicated on-site social services offering a range of benefits for residents, in particular providing assistance to formerly homeless seniors.

1940 Turnbull Avenue is also a participant in HPD’s Housing+ initiative which is designed to add new housing on underutilized land while addressing the rehabilitation and financing needs of existing developments.

Asland and Pembroke previously preserved the long-term affordability at the adjacent 353-unit former Mitchell-Lama asset in 2019 and completed over $8.0 million of capital improvements.

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