Jonathan Rose Receives $102M in Financing for Brooklyn Housing
The developer will acquire and repair affordable housing for seniors in the Bay Ridge neighborhood of Brooklyn.
NEW YORK CITY— Jonathan Rose Companies took out a $102 million loan for Shore Hill Housing in Bay Ridge, Brooklyn. PGIM Real Estate Finance provided the Freddie Mac acquisition financing for the affordable housing for elderly residents, located at 9000 Shore Road.
The borrower will use the 10-year, fixed rate loan to acquire the property, complete repairs with green efficiency upgrades, and cover transaction costs. The seller is NYU Langone, a hospital system affiliated with New York University. The selling price of the property was $149.4 million, according to Real Capital Analytics.
The apartments consist of two 14-story buildings with a total of 558 units. They are age restricted, requiring tenants to be 62 years old and are covered by a project-based Section 8 contract.
The property also contains a single-story community building and is located close to public transit, grocery stores, banks, recreational centers, parks and healthcare facilities. Originally built in 1978, the property underwent extensive rehabilitation in 2008 with low-income housing tax credits.
“This financing will help preserve an important affordable housing property in a neighborhood of Brooklyn where rents continue to rise,” says Alex Viorst, principal at PGIM Real Estate Finance, which is the commercial mortgage finance business of PGIM Inc., the $1 trillion global investment management business of Prudential Financial.