Beverly Hills-based Stonebridge Global Partners has closed on
$47 million in financing for the acquisition of seven affordable housing
properties comprising over 1,200 apartments.
Walker & Dunlop structured the loans totaling $47,293,000
for properties located in Rochester, New York, Rocky Mount, North Carolina, and
Danville, Virginia. The seller was Housing Management Rousources (HMR) an
affiliate of Portland, Maine-based Silver Street Group.
Each of the
properties is affordable and subject to Section 8 HAP contracts, Low-Income
Housing Tax Credit (LIHTC), or Section 236 restrictions.
In Rochester, Stonebridge acquired the Charlotte Harbortown
Homes located at 4575 Lake Avenue, 60 River Street, and 86 River Street. The development
comprises 553 affordable rental units in two senior high rise buildings and 16
family townhouse buildings at two sites in the Harbortown section of the
Charlotte neighborhood in northwest Rochester. It includes 157 studios and 297
one-bedroom units for seniors households, and 35 one bedroom units, 36
two-bedroom units, 22 three-bedroom units, and 6 four-bedroom units for family households.
HMR will continue to manage the property, and there will be
no changes to affordability or operations, according to the City of Rochester,
which transferred a tax exempt PILOT agreement to Stonebridge that will keep the property affordable through 2047.
The property is subject to income and rent restrictions due to its allocation
of Low Income Housing Tax Credits.
The PILOT agreement means the owner makes annual payments in lieu of taxes to the City of Rochester equal in total to no less than 10 percent of the project’s annual “shelter rent,” a phrase which refers to the amount of gross rents less utility costs.
Eli Mizrahie, CEO and managing partner of Stonebridge Global
Partners, commented, “We have been incredibly selective in deploying
capital over the last 18 months, while waiting for large portfolio opportunities
that allow us to build a significant presence in highly desired markets.
“While we have a presence in New York, the Charlotte
Harbortown Homes acquisition was highly desired and extremely competitive
amongst our peers in the industry, providing exposure to 454 senior affordable
units across two high rise locations, as well as 99 townhomes in the third
largest city in New York, Rochester. Our trusted partnerships with Walker &
Dunlop and Freddie Mac were paramount in winning this transaction and gave us
the confidence and competitive advantage we needed to perform and close
seamlessly with unbeatable agency financing terms.”
Led by Matthew Baptiste and Jeff Lawrence, Walker &
Dunlop arranged the permanent Freddie Mac loans on terms ranging from seven to
ten years, featuring interest only payment periods from five to ten years, as
well as an attractive fixed rate.
Baptiste commented, “We were excited to once again work with Stonebridge on this affordable
housing acquisition portfolio. These transactions help preserve much-needed rental
options for lower income residents throughout the east coast.
“Not only was
this transaction beneficial to these communities, where this type of housing is
in consistent high demand, but also it serves as a stable investment for our
Stonebridge is an investor focused real estate asset manager
founded to acquire and manage US real estate investments for its managing
partners and their family members.
The portfolio acquisition includes the following properties:
Charlotte Harbortown Homes, 553 Units – Rochester, New York
Cokey Apartments, 75 Units – Rocky Mount, North Carolina
Purdum Woods Apartments, 180 Units – Danville, Virginia
Richardson Court Apartments, 50 Units – Rocky Mount, North
Rolling Meadows, 130 Units – Rocky Mount, North Carolina
Southside Acres, 116 Units – Rocky Mount, North Carolina
Southwyck Hills Apartments, 116 Units – Danville, Virginia
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