About $9.5 million in construction and permanent financing has been arranged for the rehabilitation and preservation of 33 buildings in the Bedford-Stuyvesant and Brownsville sections of Brooklyn.
A total of 359 units will be renovated to be energy efficient, ensuring their viability and affordability for the next 30 years in two rapidly gentrifying neighborhoods.
Developer CB-Emmanuel Realty acquired the portfolio for approximately $28 million in December , and the total project, including renovations, is over $40 million. The firm has partnered with the New York City Department of Housing Preservation and Development (HPD), Community Services Housing Development Corp. (CSHDC), and Enterprise Community Partners on the deal.
“We are looking forward to renovating these properties and feel privileged to have played a small part in Mayor De Blasio’s housing plan to build and preserve affordable housing,” noted Richard Christopher Bramwell Jr., principal of CB-Emmanuel.”
Renovations will include roof replacements, masonry improvements, as well as new boilers and hot water heaters, which will preserve the longevity of the buildings as well as increase their energy efficiency. The owner will also leverage New York State Weatherization Assistance Program funds and a Con Edison grant for common area and exterior energy efficiency lighting renovations. All renovations will be completed with tenants in place.
Enterprise is providing CB-Emmanuel and CSHDC with $7.3 million in construction and permanent financing, and HPD is providing $2.2 million through its Low Income Housing Tax Credit Preservation Program. Enterprise Community Loan Fund, a subsidiary of Enterprise, will provide a construction loan, and Bellwether Enterprise Real Estate Capital, another subsidiary, will provide permanent financing with the New York City Employees’ Retirement System (NYCERS). The permanent loan is insured through the State of New York Mortgage Agency. The project is Enterprise’s first with Bellwether Enterprise as the approved permanent lender agent for NYCERS.
According to NYU’s Furman Center, median rent in Bed-Stuy and Brownsville has increased by 17% and 22%, respectively, during the periods 2005-2007 to 2011-2013.
The renovated apartments are available to a range of incomes from very low-income to middle-income households. Of the 359 units, 50 will be rented to households earning up to 50% of the area median income (AMI), who will be expected to pay no more than $911 for a two-bedroom apartment; 259 units will be rented to households earning up to 60% of the AMI, who will be expected to pay no more than $1,105 for a two-bedroom apartment; and 50 units will be rented to households earning up to 165% of the AMI, who will be expected to pay no more than $3,145 for a two-bedroom apartment. Thirty-six apartments will be set aside for homeless referrals. All units will be subject to rent stabilization guidelines.