“In high-cost markets like new Yorkit is essential to ensure that housing remains affordable for a wide range of incomes,” said Jason Bordainick, managing partner and co-founder of HVPG. “This ensures that families can build strong and sustainable communities and that the city can attract and maintain the vitality and diversity that makes it so special. We thank our city partners, as well as the leadership of HDC and HPD, for their continued support of our preservation. efforts by providing the tools to help these homes remain high quality affordable housing for many years to come. »

Originally acquired by HVPG and its partners in 2015, Keith Plaza and Kelly Towers comprise 311 and 302 units, respectively, all originally built in 1975 as part of the Mitchell Lama housing program. The properties provide housing for low to middle income families and seniors. the $104.9 million The recapitalization allows Hudson Valley Preservation Fund II (HVPFII), HVPG’s real estate private equity fund, to deploy equity and additional debt financing guaranteed by the New York City Housing Development Corporation (HDC). As a result, HVPG will be able to extend existing affordability restrictions on the property for 15 years. The recapitalization also allows Phase II of the over $20 million renovation to begin. Phase II focuses on improvements that will enhance the overall resident experience, including free Wi-Fi and indoor and outdoor community spaces. Outdoor spaces are highlighted by a transformative landscaped deck with lounge seating and an elevated outdoor activity area.

Existing partners HVPG and Phoenix Realty Group (PRG) will remain in place and HVPF II will enter the new buying partnership. Both properties are subject to a Department of Housing and Urban Development (HUD) Section 236 agreement, and 282 apartments at Keith Plaza are subject to a rental assistance program (RAP) contract from the HUD. HUD. At Kelly Towers, 268 apartments have tenant-based Section 8 rental assistance vouchers.

“PRG, as part of its affordable housing business, is pleased to be part of the team that has both upgraded properties with Phase I upgrades and plans to upgrade them with Phase II upgrades” , said Ron Orgel, Managing Director, Principal and Co-Founder of PRG. “The challenges of the COVID-19 pandemic have affected all New Yorkers, and together with our partners, we are excited to continue to preserve these properties, meet the needs of residents by providing high-quality affordable housing, and improve the overall experience for the families and seniors who call Keith Plaza and Kelly Towers home.”

“The recapitalization of Keith Plaza and Kelly Towers will extend affordability another 15 years, while funding significant upgrades and renovations at both properties,” said HDC’s Chairman. Eric Enderlin. “This latest preservation effort reaffirms our commitment to the residents of Keith Plaza and Kelly Towers and is a victory for our city as we work to protect the affordability and quality of our Mitchell-Lama housing stock.”

Los Tres Unidos Apartments (Los Tres) comprises 135 units and was originally acquired by HVPG and its partners in 2017 when one of the original owners – a local Harlem nonprofit, New El Barrio para la Rehabilitacion de la Vivienda y la Economia (NERVE) – was looking for a partner with experience preserving affordable housing and capital to help them retain control of their community asset and invest more in improving the property.

Today, five years later, a $85.1 million Preservation agreement provides long-term capital for additional property improvements, including sidewalk and floor repairs, roof replacement and free Wi-Fi as tenant-wide amenities ownership, while maintaining affordability requirements. Existing partners HVPG, NERVE and NCV Capital Partners will remain in place, and Nuveen, an impact investor aligned with HVPG’s mission to provide and preserve quality affordable housing, will enter the partnership, investing significant capital alongside from the HVPG fund (HVPF II) to support the long-term conservation plan.

All Los Tres apartments are subject to a HUD Section 8 contract and an Article XI tax abatement regulatory agreement with the New York City Department of Housing Preservation and Development (HPD).

“Nuveen’s business plan includes implementing a sustainable social impact program for Los Tres residents to promote health and wellness and financial empowerment to achieve better results by putting focus on closing the wealth gap,” said Pamela West, Managing Director of Nuveen’s Real Estate Impact Investing Group. “We strongly believe that our long-term collective ownership can have a positive impact while preserving and maintaining quality housing for this community.”

“NERVE continues to provide low-income housing and housing preservation for our El Barrio/East Harlem community,” added Robert Anazagasti, President and CEO of NERVE Inc.

“It took quick action and quick insight to complete the initial acquisition of Los Tres Unidos Apartments and we jumped at the chance to work in the instrumental partnership of HVPG,” said Keith Gordon, managing partner of NCV Capital. Partners. “NCV Capital’s goal is to preserve the identity of these rich, historic communities and protect residents who depend on affordable housing from rising rents. Through this carefully crafted team of developers and partners, we are confident that these objectives will be achieved.”

About Hudson Valley Property Group (HVPG)

Hudson Valley Property Group (HVPG) preserves and elevates the quality of affordable housing in United States. HVPG acquires existing affordable multi-family properties and strategically invests capital to enhance the physical, financial and social vitality of each home. With enhanced operations and enhanced service offerings, HVPG properties provide a better standard of living for its residents and stable investment assets. To date, HVPG has maintained over 9,500 units across over 50 properties, serving over 20,000 residents. For more information visit: https://hudsonvalleypropertygroup.com/.

About the Hudson Valley Preservation Fund (HVPF)

The Hudson Valley Preservation Funds are Community Reinvestment Act-eligible real estate private equity funds managed by Hudson Valley Property Group (HVPG), an owner, developer and operator of affordable housing. We leverage our expertise and relationships to apply a traditional real estate investment model to this specialized industry, preserving existing affordable housing while ensuring that each asset is optimally financed, renovated and operated. To date, the Fund has used equity and capital to raise over $1 billion investment in affordable housing.

About Phoenix Real Estate Group

Phoenix Realty Group LLC (www.phoenixrg.com) is a more than 20-year-old company focused on multi-family residential properties with three main lines of business: affordable housing, value-added and new construction. From December 31, 2021PRG had about $1.5 billion gross real estate assets under management.

Media contact: [email protected]

SOURCE Hudson Valley Real Estate Group