Hudson Valley Property Group and Phoenix Realty Group (PRG) have partnered to acquire, renovate, and preserve 612 units of formerly at-risk Mitchell-Lama workforce housing apartments in the Bronx, New York.
The properties acquired are the 311-unit, 30-story, Keith Plaza, located at 2475 Southern Boulevard, and the 301-unit, 17-story Kelly Towers, located at 2375 and 2405 Southern Boulevard.
The renovation will exceed $14 million and includes significant energy efficiency enhancements, specifically better heating systems, replacing all lighting, critical repairs to the buildings, with upgrades to the lobbies, common areas, and apartments.
“This important project will ensure that working class families and retired seniors who reside here have a quality, affordable place to call home for years to come. We plan to follow the City’s lead and continue to work to preserve affordable housing throughout the five boroughs,” said Jason Bordainick, Managing Partner, Hudson Valley Property Group.
Keith Plaza is one of the first four preservation projects in the nation utilizing the Rental Assistance Demonstration (RAD) program, which included the issuance of a new 20-year, Section 8 Project-Based Rental Assistance (PBRA) contract.
The recent congressional approval of the use of these contracts is key to preserving more than 30 percent of the 1.34 million units in the program that are otherwise set to expire by 2017.
Financing was provided by the City of New York, including the New York City Housing Development Corporation and the New York City Department of Housing Preservation and Development, in addition to an equity investment provided by Belveron Partners, Hudson Valley and PRG.
The purchase was brokered by Heidi Burkhart, president of Dane, a New York City based affordable housing brokerage and consulting firm.
