Tredway, in partnership with Gilbane Development Co. and ELH Mgmt., announced the acquisition of Sea Park Apartments, an 816-unit apartment community in Coney Island in New York City.
The three-building property was purchased for $150 million from The Arker Cos.
The transaction marks the biggest New York City project for Tredway, a real estate investment company launched by Will Blodgett in 2021. Earlier, he cofounded national affordable housing firm Fairstead.
“It aligns very well with our core set of values,” Blodgett tells Affordable Housing Finance, noting the partnership with Gilbane, ELH, and others. “It’s also a partnership with the neighborhood, the community, and the residents. That perhaps to us is the most exciting part of the partnership.”
According to his firm, 589 homes will serve households with a maximum yearly income of 60% of the area median income (AMI), 159 homes will serve those with a maximum income of 50% of the AMI, and 65 homes will serve households earning up to 80% of the AMI. There will be 90 apartments set aside for formerly homeless residents in addition to three units for superintendents.
The development team will embark on a multimillion-dollar rehabilitation of the Sea Park complex, including quality-of-life improvements to interior and exterior courtyards, renovating the property’s community room, as well as strengthening its resiliency and improving the property’s energy efficiency.
The team also intends to build 250 new units for seniors on an underutilized portion of the property.
“To be able to build affordable housing for seniors is going to have a tremendous impact on the community and is going to create homes for the neighborhood seniors to age in place with the dignity and the respect they deserve,” says Blodgett.
Berkadia is the loan originator, and Deutsche Bank is the lender. New York City-based ELH Mgmt. will serve as property manager. No public subsidies were used in the deal, according to Blodgett.
An Ariel Property Advisors team, led by founding partners Victor Sozio and Shimon Shkury, along with investment sales director Benjamin Vago and director of research and sales Remi Mandell, arranged the sale of the portfolio on behalf of the seller.
The preservation and creation of new affordable housing at Sea Park Apartments were achieved in conjunction with New York State Homes and Community Renewal, the New York State Housing Finance Agency, and the New York City Department of Housing Preservation and Development.