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

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

TRD 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

1065-1075 Gerard Avenue in the Bronx 

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

From left: 305 East 47th Street and 286 River Avenue (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Inwood has stayed affordable for a remarkably long time. That could soon change. (Credit: Wikipedia)

Inwood braces for gentrification

Rent reform is propelling a new wave of New York and California investors to Miami (Credit: iStock)

Rent reform in New York, California propels new wave of multifamily investors to Miami

Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Developer seeks $40M for Opportunity Zone site in downtown Newark

arrow_forward_ios