Steele Properties has announced the $41 million acquisition and renovation of a project-based Sec. 8 development in Monticello, N.Y.
The Denver-based affordable housing firm has a growing portfolio, and the deal marks the company’s first acquisition in New York. Sleepy Hollow Apartments will receive more than $42,000 per unit in hard cost rehabilitation as part of the acquisition, according to Steele Properties. The scope of renovation encompasses both extensive exterior and interior work. Building improvements will include unit updates, new roofs, HVAC systems, and plumbing and electrical upgrades.
Project amenities will include a new community building, a new playground and outdoor pavilion, an upgraded laundry facility, as well as accessibility improvements in parking and common areas.
This project is financed with low-income housing tax credits allocated by New York State Homes and Community Renewal (NYSHCR) and tax credit equity provided by PNC Real Estate. Tax-exempt bond financing is provided by NYSHCR’s State of New York Mortgage Agency credit-enhancement program, and Citibank is the construction lender. NYSHCR’s Multifamily Preservation Program provided subordinate financing.
“Steele Properties is delighted to partner with New York State Homes and Community Renewal, the Department of Housing and Urban Development, Citibank, and PNC to successfully fund this significant rehabilitation project that helped us preserve and enhance 229 affordable housing units in New York,” said Chad Asarch, principal of Steele Properties, in a statement. “We are committed to ensuring everyone has access to safe, comfortable, and quality housing they can afford, especially as our country faces an affordable housing crisis.”
Built in 1970, Sleepy Hollow consists of 23 buildings and 229 units of one-, two-, three-, and four-bedroom apartment homes on 25.7 acres.
Monroe Group, Steele’s management partner, will oversee management of the property.
Since its formation in 2006, Steele has completed over $700 million in acquisitions, sales, and development activity, involving more than 50 properties and more than 5,000 units, including over 40 tax credit projects.