More than 400 apartments in Harlem, N.Y., will remain affordable to their residents for decades to come as part of a large refinancing and preservation effort.
The recent transaction involves the 157-unit AK Houses Apartments and the adjacent 255-unit 1775 Houses Apartments. Both were built in 1980.
Centerline Capital Group arranged $91.9 million in fixed-rate financing through Freddie Mac. The term of the two Freddie Mac facilities is 10 years, with a 30-year amortization schedule.
Borrower Tahl Propp Equities plans to reinvest approximately $4 million to address capital needs at the properties, including new elevators and roofs. Unit interiors and common areas will also be improved. Some of the remaining capital will also be used to reinvest in additional properties in the Harlem/Northern Manhattan market, announced Centerline.
The two Harlem properties benefit from long-term project-based Sec. 8 contracts. They have also entered into 30-year regulatory agreements with the city’s Department of Housing Preservation and Development.
“These properties are very well located and have averaged 98 percent-plus occupancy over the last 12 months. The Manhattan multifamily market continues to be one of the strongest markets in the nation, and the rental submarket exhibits low vacancy and high demand for affordable rental properties,” said Jim Gillespie, managing director at Centerline, in a statement.
