Tredway, an affordable and mixed-income housing owner and developer, has acquired a 602-unit property in New York City.
Located in the Far Rockaway section of Queens, Ocean Park Apartments was originally developed under the city’s Mitchell-Lama program in 1973. The development consists of two 26-story towers offering one-, two-, and three-bedroom apartments.
“We are pleased to take on the stewardship of Ocean Park and to execute a preservation that significantly strengthens the property’s affordability while providing critical capital repairs, energy-efficiency improvements, and expanded social services,” said Will Blodgett, founder and CEO of Tredway. “Instituting rent stabilization at Ocean Park protects current and future residents from rapidly rising rental prices and will maintain the property as a beacon of opportunity for the entire Far Rockaway community.”
The property was previously owned by The Related Cos.
Concurrent with the $88 million project, Tredway entered into a new regulatory agreement with the city Department of Housing Preservation and Development to bring all units into rent stabilization and extend the affordability of 423 units at 60% of the area median income (AMI) and 179 units at 80% of the AMI, preventing substantial imminent rent increases.
Residents will also benefit from expanded food and nutrition services in partnership with City Harvest and swim and water safety lessons provided by the nonprofit Rising Tide Effect, according to Tredway.
A substantial rehabilitation is planned for the beachfront complex, primarily aimed at correcting decades of deterioration caused by exposure to the elements and salt spray. The scope of work is slated to include critical structural repairs, the complete replacement of the parking deck, extensive waterproofing, window weatherization, roof replacement, and Local Law 11 work, which requires buildings over six stories to undergo periodic facade inspections and necessary repairs.
Merchants Capital’s Michael Milazzo, senior vice president, and Mat Wambua, vice chairman and executive vice president, secured a $60.5 million acquisition loan from Merchants Bank.
The sale was brokered by Victor Sozio and Shimon Shkury of Ariel Property Advisors.
