JV Acquires 1,904 Affordable Housing Units in The Bronx
The 48-building acquisition, made by Fairstead and Invesco Real Estate, represents the largest deal of its kind in New York in 2021.
NEW YORK, NY – Fairstead and Invesco Real Estate have acquired 1,904 affordable units, spanning 2.3 million square feet, in the Bronx. The transaction represents the largest deal of its kind in New York in 2021, by both portfolio size and investment size.
The portfolio encompasses 48 buildings in the Bronx neighborhoods of Longwood, Tremont, Crotona Park and Morrisania. The properties include a mix of five-story and six-story, existing and newly-constructed buildings. Some of the buildings feature ground-floor retail space.
All of the units are operated under a regulatory agreement, serving residents that earn between 30% and 100% of the area median income.
“Fairstead and Invesco Real Estate are bringing in new capital to this portfolio through an innovative capital structure that will allow us to make strategic investments to improve the sustainability of the buildings and enhance the lives of residents through social services and programming,” says Brett Meringoff, managing partner of development at Fairstead.
As the owner and property manager of the 48 properties, Fairstead will preserve the affordability of the units, implement upgrades at the buildings and deploy social services and community programming at the properties.
The portfolio was previously managed by Property Resources Corp.
“PRC is immensely proud of the work our team has done over 50 years to build and preserve affordable housing in the Bronx,” says Ben Linde, principal at PRC. “We are grateful that the sale of this portfolio will enable us to build upon that legacy and extend our ability to provide homes and create stability for even more families, both in the Bronx and throughout the New York area.”
Berkadia and Deutsche Bank provided Fairstead and Invesco Real Estate with capital solutions for the transaction.
Representing both Fairstead and PRC, Ariel Property Advisors’ EVP of investment sales Victor Sozio and president Shimon Shkury led the transaction.
Invesco Real Estate currently owns more than 5,000 affordable housing units across 10 states.
Fairstead works to provide programming and services that improve resident health outcomes, provide financial literacy, offer job training, bolster internet access, and provide opportunities for civic engagement. The firm plans to implement this programming to the Bronx portfolio.
“Fairstead is committed to creating high-quality, sustainable housing, and an important part of our strategy is preserving and enhancing existing affordable housing stock so it can remain a great place to live for the long-term,” says Jeffrey Goldberg, Fairstead CEO. “We are proud to be serving thousands of Bronx families, giving them peace of mind that their homes will remain affordable and providing them with access to important social services and programming.”