LIHC Investment Group and Silver Street Development Corp. have secured $71 million in financing to acquire and preserve Marble Hall Apartments, a rental community serving 134 low-income households in Tuckahoe, New York.
In line with the $54.5 million purchase, the new owners will maintain the property as affordable housing through at least 2060 while investing $5.78 million in upgrades and improvements over the next 10 months.
“The preservation of Marble Hall guarantees the availability of affordable, healthy homes well into the future while providing peace of mind for our residents during a time of uncertainty for many American families,” said Andrew Gendron, principal at LIHC Investment Group. “This deal was truly a team effort, from the sellers to the many public and private partners who rolled up their sleeves to make this intricate transaction a reality. We applaud all parties for working to ensure our existing stock of affordable housing is both protected and improved.”
Chris Poulin, chief operating officer of Silver Street Development Corp., added, “We are extremely pleased with the successful acquisition and long-term plans we have put in place for Marble Hall, not only for the residents who call the property home, but for the village, town and county as a whole.”
The acquisition and preservation of Marble Hall is supported in part by a $48 million Department of Housing and Urban Development (HUD)/Federal Housing Administration Section 223(f) refinancing loan provided by Rockport Mortgage Corp. and $17 million in 4% low-income housing tax credit equity allocated by New York State Homes and Community Renewal.
At the local level, associated tax-exempt bond financing in the amount of $38 million was issued by the Westchester County Industrial Development Agency, and a 40-year PILOT (payment in lieu of taxes agreement) was approved by city officials.
In connection with the Section 223(f) loan, the property’s prior project-based Section 8 Housing Assistance Payment (HAP) contract, which was set to expire in September 2039, was replaced with a new 20-year HAP contract. In addition, the owners and HUD agreed to extend the term of the new HAP contract an additional 19 years, effectively maintaining Marble Hall Apartments as affordable housing through 2060.
LIHC Investment Group and Silver Street Development Corp. are devoting $5.78 million, or about $43,135 per unit, to renovate the 50-year-old building, address outstanding capital needs, and extend its useful life. Special attention is being paid to improve the property’s energy efficiency, the replacement of heat and hot water boilers with energy-efficient units, Energy Star-qualified LED lighting, and common area and in-unit finish upgrades.
As part of the rehabilitation, all common areas, including the lobby, laundry room, community room, and management office, will receive upgraded finishes, lighting, fresh paint, and new flooring. A tenant computer center will be added to the community room for residents’ use, and the playground and parking lot will be repaired and recoated, along with other site and security system improvements.
The majority of units will receive upgraded plank-style vinyl flooring, updated kitchens outfitted with stainless-steel Energy Star appliances and solid surface countertops, and new vanity cabinets and cultured marble tops installed in residents’ bathrooms. Sinks, faucets, showerheads, and toilets will be replaced with water-efficient models, and new air conditioning units will be supplied by the owners. Several apartments will be reconfigured for full ADA compliance and to better serve those with disabilities, hearing, and visual impairments. The number of accessible parking spots will also be increased.
Marble Hall’s amenities include on-site security, maintenance, and management, a centralized laundry room, an outdoor playground, a community room, and a surface parking lot.
The architect of record for the project is The Architectural Team based in Chelsea, Massachusetts.