Bronx Mitchell-Lama Portfolio Trades for $166 Million
John Jordan | January 2020
NEW YORK—A portfolio of eight Mitchell-Lama apartment buildings in the Bronx totaling 1,275 units has changed hands in a deal valued at $166 million.
A partnership of LIHC Investment Group, Belveron Partners and Camber Property Group announced the acquisition on Jan. 3 of the Bronx Park portfolio from Cammeby’s International Group. The deal includes the assumption of existing debt.
The Bronx Park portfolio is comprised of eight Mitchell-Lama buildings constructed in the 1970s and rehabilitated in 2014, with 1,275 residential units and 10 commercial spaces. The units are affordable to low-income families earning 60% of area median income, many of which benefit from a Section 8 contract.
The portfolio is broken into three phases. Phase one comprises of 408 units and eight commercial spaces located at 2111 Southern Blvd. and 800-820 E 180th St. Phase two includes 536 units at 1880 Valentine Ave, 2000 Valentine Ave, 1985 Webster Ave, and 2100 Tiebout Ave. Phase three consists of 331 units and two commercial spaces at 355-365 E 184th St. and 333 E 181st St.
The new owners plan to make operational improvements to benefit the residents and secure the long-term future of the buildings as the city faces an affordable housing crisis. Mitchell-Lama housing is some of the most at-risk housing in the city, with some owners choosing to convert properties to market-rate when able to opt out of regulation, the new ownership states.
The ownership group is a significant owner of Mitchell-Lama housing across the city and is committed to preserving it for the long term as affordable housing, according to a press statement released by the joint venture partners.
“Assembling this portfolio with like-minded, mission-driven owners is a tremendous step toward preserving even more homes for working families in the Bronx,” said Andrew Gendron, principal of LIHC Investment Group. “We want to thank all of our partners, both public and private, for supporting, preserving and expanding safe and affordable housing opportunities across the city.”
“We’re proud to add Bronx Park to our growing portfolio of affordable housing throughout the city,” said Rick Gropper, co-founder and principal of Camber Property Group. “Thanks to our public and private partners for sharing our commitment to protecting these 1,275 units for the families that need them.”
To finance the project, the joint venture partners assumed New York State Housing Finance Agency and Freddie Mac loans serviced by Citibank, N.A. and JLL Capital Markets.