MDG, Housing Partnership buy 500-unit Bronx rental for $78M

The firms secured $106M in financing for the Michelangelo Apartments deal

TRD New York /
Apr.April 18, 2017 03:10 PM

MDG Design & Construction and the nonprofit the Housing Partnership purchased the 498-unit Michelangelo Apartments rental building in the South Bronx for $78.1 million, according to property records filed Tuesday.

The 25-story property at 225-255 East 149th Street contains 498 residential units and 22 commercials units over 547,382 total square feet, records show. The transaction occurred last month, but entered the public record Tuesday.

MDG and Housing Partnership lined up $105.8 million in financing for the purchase, including an $82.6 million loan from the New York State Housing Finance Agency – with the mortgage giant Fannie Mae providing credit enhancement – and a $23.2 million loan from the seller, BSR Management. The mortgages are also for a strip of vacant land adjacent to the building.

MDG and the Housing Partnership could not immediately be reached for comment.

In 2015, the property grossed $8.2 million of income, netting $3.7 million after expenses not including debt repayments. Because it is part of the Mitchell-Lama program, which is intended to support affordable housing for middle-income New Yorkers, the building is not subject to property tax.

The city valued the building at $24.4 million in 2016, according to tax records.

The sale comes amid a spike in Bronx development, with the Chetrit Group and Somerset Partners planning to develop a 1,300-unit market-rate rental project in the Mott Haven neighborhood. In total, investors put $3.3 billion into the borough in 2016.

(To see our Bronx commercial sales Deal Sheet, click here)


Related Articles

arrow_forward_ios
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

1159 and 1184 River Avenue with Maddd Equities' Jorge Madruga (left) and Joy Construction's Eli Weiss (right) (Credit: Google Maps)

Maddd Equities, Joy Construction score $64M for massive Bronx project

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

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

California passes landmark rent control law

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

arrow_forward_ios