Bronx, East Harlem and Long Island Affordable Housing Receives $35 Million

NEW YORK CITY—Housing properties in the Bronx, East Harlem and Riverhead, a town in Suffolk County on Long Island, received loans to preserve their affordability. Each of the communities have affordable housing but are also noticeably attracting attention for value-add investments which can result in conversions to market-rate apartments. Bellwether Enterprise Real Estate Capital LLC, the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc., closed on over $34.8 million in loans for three projects.

“Affordability remains a critical issue nationwide, and high-cost areas like New York City and its surrounding suburbs are struggling to keep costs down,” says Ned Huffman, president of Bellwether Enterprise. “Bellwether Enterprise is proud to play a role in keeping high quality affordable homes available to those who need them.”

The recent transactions include the following properties:

Bronxview at Serviam, located at 2885 Marion Ave., received an $11.7 million forward loan commitment for the construction of a mixed-income apartment building to be developed by Fordham Bedford Housing Corporation. The building will feature 114-apartments, comprising one-, two-, and three-bedroom units. Developed on a parcel of land slightly over an acre, the project will be part of a larger seven-acre campus in the Bedford Park neighborhood. It will contain both low-income and moderate-income apartments.

Equity for the project is provided through the purchase of 9% Low-Income Housing Tax Credits syndicated by Enterprise Community Investment, which is a subsidiary of the affordable housing nonprofit Enterprise Community Partners.

Jim Gillespie, SVP of Bellwether Enterprise’s New York office, arranged the loan for the Fordham Bedford Housing Corporation, with Freddie Mac as the lender. The loan features a 36-month forward period followed by a 30-year permanent mortgage, and a competitive fixed-rate locked at the time of the construction loan closing.

John Wesley Village apartments at One Aldersgate in Riverhead received a $12 million refinancing loan for a 115-unit affordable senior housing development. A buyer, who was not disclosed, will use the loan to acquire the asset and prepay existing debt, and with the excess available funds will upgrade the interior and exterior of the building.

Gillespie arranged the financing, which is a Federal Housing Administration, US Department of Housing and Urban Development 223f loan. In addition to the refinancing, this project-based section 8 housing assistance payment contract was extended by HUD for another 20 years. The Riverhead Industrial Development Agency also provided tax relief in the form of a PILOT  (payment in lieu of taxes) agreement.

Finally, the East Harlem portfolio, was granted an $11.1 million loan for four properties comprising 111 units. The properties are located at 428-436 E. 117th St., 446-48 E. 117th St., 22-28 E 119th St. and 232-238 E 119th St. The sponsor, Mutual Housing Association of New York (MHANY) Management, will use the loan to renovate the properties. The upgrades will include new operating systems, unit interior upgrades and common area improvements.  

Gillespie also arranged this Fannie Mae Green Rewards loan. The financing features a 12-year loan term, with five years interest-only, at a competitive fixed rate.

“As a resident of New York City with one of the nation’s most significant affordable housing shortages, it’s meaningful to me both personally and professionally to be able to leverage my 20 years of experience working with key players in the public sector and private financial institutions, to help structure transactions that will both preserve existing housing and develop new affordable housing,” says Gillespie.

Headquartered in Cleveland, OH, Bellwether is a national commercial and multifamily mortgage banking company with 30 office across the country.