Hudson Valley Property Group (HVPG) has acquired a five-property portfolio with 1,140 units across the Washington, D.C., metropolitan area and North Carolina.
The deal has a project cost of $208 million, which includes acquisition and planned renovations, said the national affordable housing preservation company. The seller was not disclosed.
The acquisition marks the next step of HVPG's growth in the Mid-Atlantic and Southeast regions. While the firm has previously undertaken rehabilitation projects in Maryland, the acquisition represents its first project in North Carolina.
"The acquisition of these properties marks an exciting milestone for our firm, as we have increased our current portfolio of affordable housing to 65 communities with more than 10,650 units throughout the Northeast, Midwest, Mid-Atlantic, and Southeast regions of the United States," said Jason Bordainick, HVPG co-founder and managing partner. "The continued growth of our holdings since our founding is a testament to our continued commitment to preserving quality affordable housing that benefits both our residents and the communities they call home. We thank our partners for their ongoing collaboration and look forward to upgrading these properties in line with our proven investment strategy."
His firm gains ownership of four properties in Prince George’s and Montgomery counties in Maryland—Central Gardens and Millwood Townhomes, both in Capitol Heights; Pleasant Homes in Seat Pleasant; and Rock Creek Terrace in Rockville—along with Village Square in Gastonia, North Carolina.
As part of its acquisition strategy, HVPG will improve and preserve the affordable housing units in the portfolio. It is planning approximately $13 million of initial renovations across the five properties, including site infrastructure upgrades and in-unit bathroom, kitchen, and apartment safety improvements as needed to ensure adherence to HVPG's community standards.
To ensure long-term affordability for its residents, HVPG secured new or assumed existing governing regulatory agreements for each of the properties with agencies inclusive of the Department of Housing and Urban Development, Prince George's County, and Fannie Mae to extend affordability by an average of 29.5 years across the portfolio.
The acquisition and property rehabilitations are financed from the firm’s latest fund as well as debt financing from Fannie Mae arranged through JLL.
