Arker spending $70M to upgrade $85M Bronx portfolio

Rents will rise on 676 subsidized units, but residents will not be affected

New York /
Dec.December 23, 2014 04:05 PM

After picking up an 18-building Bronx portfolio for $85.5 million in June, affordable housing developer The Arker Companies is planning a $70.5 million upgrade of the properties.

Improvements will include new bathrooms and kitchens, the Wall Street Journal reported. “There will be a real sprucing up of the properties,” Daniel Moritz, one of Arker’s principals, told the newspaper.

Arker acquired the South Bronx portfolio in the borough’s Morrisania neighborhood this summer from an investment group led by Two Trees Management, which had owned the buildings since the late 1970s. The Real Deal reported the sale, but had not confirmed the $85.5 million price.

Floral Parker, N.Y.-based Arker owns 5,500 housing units in the New York area, and will rely on a combination of city and state programs to finance the deal and upgrade the units. Equity will come largely from tax credits sold to Wells Fargo & Co. and debt financing from the sale of city Housing Development Corp. bonds. Freddie Mac will provide the mortgage insurance.

Rents for all apartments are subsidized by the U.S. Housing and Urban Development Department’s Section 8 program. As part of the deal, Arker will be raising rents, but the increase will not be transferred to the tenants, whose rents are capped at 30% of their incomes.

The project helps Mayor Bill De Blasio inch toward his stated goal of preserving or creating 200,0000 units of affordable housing in the next decade. [WSJ] — Tess Hofmann

 

Related Articles

arrow_forward_ios
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
1065-1075 Gerard Avenue in the Bronx 
Prana pays Related $36M in Bronx multifamily play
Prana pays Related $36M in Bronx multifamily play
448 East 143rd Street in the Bronx (Credit: Google Maps)
Private developer’s NYCHA project in Mott Haven lands $79M in financing
Private developer’s NYCHA project in Mott Haven lands $79M in financing
Clockwise from top: Mayor Eric Adams, Bruce Teitelbaum, Adrienne Adams and Suri Kasirer (Getty/Adams via Paul Dilakian)
A make-or-break moment for NYC’s housing crisis
A make-or-break moment for NYC’s housing crisis
More and more homebuyers and investors are coming to the negotiating table with cash in hand. (iStock)
In cities, “starter homes” getting more difficult to find
In cities, “starter homes” getting more difficult to find
NYCHA Chair Greg Russ (NYCHA, iStock)
NYCHA sent thousands of false Section 8 termination notices
NYCHA sent thousands of false Section 8 termination notices
At Home's Lee Bird with 2100 Bartow Avenue (Google Maps, iStock) Bronx, New York
Home decor retailer leases 135K sf for first Bronx store
Home decor retailer leases 135K sf for first Bronx store
Eric Adams, mayor of New York City (Getty Images, iStock)
Adams pledges extra $5B in affordable housing funds
Adams pledges extra $5B in affordable housing funds
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...