Jonathan Rose Companies, The NHP Foundation (NHPF) and Nuveen, the investment manager of TIAA, have acquired Shore Hill Housing, a two-building, HUD senior housing complex in Bay Ridge, Brooklyn, from NYU Langone.
The 558-unit HUD project-based Section 8 Housing complex is located at 9000 Shore Road was bought for $150 million.
The property consists of two interconnected 14-story towers totaling 414,127 s/f built in 1977 and set on 2.69 acres. The unit mix includes 325 studios and 233 one-bedrooms.
The acquisition was financed by a $102 million Freddie Mac loan arranged through Prudential. The Rose Affordable Housing Preservation Fund IV, along with joint venture non-profit partner, NHPF, and co-investor Nuveen, will invest $52 million of equity in the property.
“Shore Hill is a near perfect match for our Fund and our firm’s capabilities,” said Nathan D. Taft, partner and managing director of acquisitions at Rose.
“We are making a long-term investment to preserve an important affordable housing property for seniors with a conventional debt and private equity execution,” added Joshua Plattner, who led this acquisition for Rose.
Newmark Knight Frank president Jimmy Kuhn represented NYU in the deal along with David Fournier, of the firm’s affordable housing group, and David Behin, executive managing director of the NKF’s Brooklyn Capital Markets Division.
The venture will invest in capital improvements to increase energy efficiency and enhance the resident services at Shore Hill as part of Rose’s Communities of Opportunity programming.
“We are excited about the opportunity to drive capital into this Brooklyn neighborhood, preserving a significant number of affordable units and improving the living standards of the residents in these buildings,” said Pamela West, Senior Director with Nuveen’s impact investing team.
“We look forward to continuing our efforts by investing in similar assets across the country for families and seniors.”
Rose Community Management, an affiliate of Jonathan Rose Companies, will take over management of the community. The partnership between the Fund and NHPF will allow for an increased capacity to provide services to residents of the property.
Operation Pathways, NHPF’s Resident Services affiliate will oversee the provision of services, which currently includes operation of a Community Center, onsite transportation services, and resident service coordination to connect residents to other local health, wellness, and support services.
“Partnering with Jonathan Rose Companies for the first time provides a tremendous opportunity for both of our organizations to showcase our strengths,” said NHPF President & CEO Dick Burns. “We look forward to working together with them on other successful co-ventures.”