Walker & Dunlop, Inc. structured a $93,925,200 loan with the US Department for Housing and Urban Development (HUD) for Polyclinic Apartments in Hells Kitchen.
The Section 8 property provides affordable housing units to tenants in one of the most expensive citys in the country.
Standard Communities, the affordable housing division of Standard Property Company, the apartments located at 341 West 50th Street from Starrett Corporation for $110.25 million in a deal that closed in October, 2017.
A Walker & Dunlop team led by Chris Rumul, arranged the financing via HUD’s 223(f) program for Standard.
As well as acquisition financing, the loan will allow Standard Property to make immediate repairs and fund future renovations. In conjunction with the purchase, the borrower preserved the existing 151 affordable housing units by renewing the property’s 20-year Section 8 HAP contract and obtaining a 35-year Article XI tax abatement approval through the New York City Department of Housing Preservation & Development.
Rumul commented, “This HUD transaction was unusual because it involved an acquisition, the negotiation of multiple different tax agreements, and coordination with several state and local government authorities.”
Standard Communities’ co-founder, Scott Alter, added, “Acquiring and preserving this unique and well-located property as affordable housing when it was at-risk of converting to a market rate property was important to us. We are glad that all parties were able to support the creative structure used to ensure these apartments remain affordable for years to come.”
Located on West 50th Street, between 9th and 8th Avenues, Polyclinic Apartments is just blocks away from Central Park.
The historic building in which Polyclinic Apartments is located was originally constructed in 1910, and a large addition was made in 1930.
Formerly a local hospital, the building underwent a complete renovation and conversion to multifamily apartments in 1981, when it was first awarded a Section 8 HAP Contract.
The community has maintained an average occupancy of 99.4 percent over the past three years and maintains a waiting list exceeding 180 potential tenants, thanks to its affordability and desirable location.