Beverly Hills-based Stonebridge Global Partners has closed on $47 million in financing for the acquisition of seven affordable housing properties comprising over 1,200 apartments.
Walker & Dunlop structured the loans totaling $47,293,000 for properties located in Rochester, New York, Rocky Mount, North Carolina, and Danville, Virginia. The seller was Housing Management Rousources (HMR) an affiliate of Portland, Maine-based Silver Street Group.
Each of the properties is affordable and subject to Section 8 HAP contracts, Low-Income Housing Tax Credit (LIHTC), or Section 236 restrictions.
In Rochester, Stonebridge acquired the Charlotte Harbortown Homes located at 4575 Lake Avenue, 60 River Street, and 86 River Street. The development comprises 553 affordable rental units in two senior high rise buildings and 16 family townhouse buildings at two sites in the Harbortown section of the Charlotte neighborhood in northwest Rochester. It includes 157 studios and 297 one-bedroom units for seniors households, and 35 one bedroom units, 36 two-bedroom units, 22 three-bedroom units, and 6 four-bedroom units for family households.
HMR will continue to manage the property, and there will be no changes to affordability or operations, according to the City of Rochester, which transferred a tax exempt PILOT agreement to Stonebridge that will keep the property affordable through 2047. The property is subject to income and rent restrictions due to its allocation of Low Income Housing Tax Credits.
The PILOT agreement means the owner makes annual payments in lieu of taxes to the City of Rochester equal in total to no less than 10 percent of the project’s annual “shelter rent,” a phrase which refers to the amount of gross rents less utility costs.
Eli Mizrahie, CEO and managing partner of Stonebridge Global Partners, commented, “We have been incredibly selective in deploying capital over the last 18 months, while waiting for large portfolio opportunities that allow us to build a significant presence in highly desired markets.
“While we have a presence in New York, the Charlotte Harbortown Homes acquisition was highly desired and extremely competitive amongst our peers in the industry, providing exposure to 454 senior affordable units across two high rise locations, as well as 99 townhomes in the third largest city in New York, Rochester. Our trusted partnerships with Walker & Dunlop and Freddie Mac were paramount in winning this transaction and gave us the confidence and competitive advantage we needed to perform and close seamlessly with unbeatable agency financing terms.”
Led by Matthew Baptiste and Jeff Lawrence, Walker & Dunlop arranged the permanent Freddie Mac loans on terms ranging from seven to ten years, featuring interest only payment periods from five to ten years, as well as an attractive fixed rate.
Baptiste commented, “We were excited to once again work with Stonebridge on this affordable housing acquisition portfolio. These transactions help preserve much-needed rental options for lower income residents throughout the east coast.
“Not only was this transaction beneficial to these communities, where this type of housing is in consistent high demand, but also it serves as a stable investment for our client.”
Stonebridge is an investor focused real estate asset manager founded to acquire and manage US real estate investments for its managing partners and their family members.
The portfolio acquisition includes the following properties:
Charlotte Harbortown Homes, 553 Units – Rochester, New York
Cokey Apartments, 75 Units – Rocky Mount, North Carolina
Purdum Woods Apartments, 180 Units – Danville, Virginia
Richardson Court Apartments, 50 Units – Rocky Mount, North Carolina
Rolling Meadows, 130 Units – Rocky Mount, North Carolina
Southside Acres, 116 Units – Rocky Mount, North Carolina
Southwyck Hills Apartments, 116 Units – Danville, Virginia