Gilbane Development Company is expanding its affordable housing portfolio in the Bronx.
A joint venture of Gilbane, Systima Capital Management, ELH Management and TerreAlto acquired four Section 8 projects and a development site in the Bronx for $107.5 million from Joel Gluck’s Spencer Equity. Crain’s was first to report the sale.
The four buildings consist of 477 units across more than 551,000 square feet at 280 East 161st Street in Morrisania, 2363 Southern Boulevard in Belmont, and 1105 Jerome Avenue and 101-3 West 165th Street in Highbridge.
The development site is 525,000 square feet and is behind the building at 280 East 161st Street, Gilbane’s Blaise Rastello told The Real Deal. Gilbane plans a 500-unit affordable housing complex on the site.
”We like the Bronx, we like affordable housing,” Rastello said. “Large development sites are hard to come by in the city, and so this was an opportunity to preserve almost 500 units of affordable housing and to create about 500 units of affordable housing.”
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Gilbane, ELH and TerreAlto will co-manage the existing four buildings, which will remain affordable, according to Rastello. Gilbane and Systima were co-equity partners on the transaction.
An Ariel Property Advisors team including Victor Sozio and Shimon Shkury brokered the transaction on behalf of Spencer Equity. The seller had yet to respond when contacted for comment.
City property records show that 280 East 161st Street last sold in 2010 for $15 million, 2363 Southern Boulevard traded hands in 2007 for $3.8 million and 1105 Jerome Avenue sold in 1981 for an undisclosed amount. The previous sale of 101-3 West 165th Street couldn’t be determined.
Gilbane has been active in affordable housing projects in New York. The investment and property management firm is developing a nine-story, 290-unit affordable building and 24,300-square-foot arts center on Rockaway Avenue and Chester Street in Brownsville.
Gilbane has also teamed up with Hudson Companies to develop The Peninsula in Hunts Point, a $300 million project with roughly 740 units of affordable housing. The five-building, five-acre site is being constructed in three phases, with the first having finished this year with 183 units.
The second phase is slated for completion next year with 360 units, while the final phase is expected to be done by 2026 and have about 180 units.
Spencer Equity sold an eight-building, 469-unit affordable housing portfolio in the South Bronx last year to multifamily developer and investor Phoenix Realty Group for $91 million after buying the buildings for $66.6 million in 2016.