Hudson Valley Property Group (HVPG) has acquired a 250-unit mixed-income housing development in East Providence, Rhode Island. The $53.7 million closing of Kent Farm Apartments marks the firm’s first acquisition in Rhode Island as HVPG looks to expand its preservation footprint throughout New England.
New York-based HVPG will focus on upgrading and renovating the property while keeping rents affordable for residents.
“The lack and loss of quality, affordable housing stock is a nationwide challenge. We are excited to bring our preservation experience and apply our expertise to our first property in the New England region,” said Jason Bordainick, HVPG managing partner and co-founder.
The majority of the units at Kent Farm Apartments operate under a federal project-based Section 8 contract and will remain affordable for the long term.
The $5.8 million planned renovation includes new asphalt roof installations as well as upgrades and beautification of the community spaces, such as new flooring, a refreshed laundry room, fitness center upgrades with new equipment, a new telehealth center, security enhancements, and a new community kitchen and business center with new computers and a printer. In-unit upgrades include installations of energy-efficient lighting and water-saving bathroom fixtures.
The acquisition was financed with equity from Hudson Valley Preservation Fund II and a bridge loan provided by PGIM Real Estate. The next phase of HVPG’s preservation plan will be to secure subsequent debt financing through a Federal Housing Administration Section 223(f) loan that will fund the extensive renovations of the property.
The property was purchased from Taymil Partners with the support of CBRE as broker.
To date, HVPG has preserved almost 9,500 units of affordable housing nationwide.