Phoenix Acquires Brooklyn Portfolio

NEW YORK CITY -- Locally based Phoenix Realty Group has announced the acquisition and renovation of 362 affordable apartments in the Bedford-Stuyvesant neighborhood of Brooklyn for $96 million. All of the units will be preserved as affordable, and 95 percent of the units will be subsidized with long-term Sec. 8 contracts.
The seller of the portfolio, Bedford Stuyvesant Restoration Corp., said that for several years, it had sought a developer that would buy the apartments with the intention of keeping units affordable.
The price includes $30 million to renovate the apartments. Tenants are expected to remain in place during the yearlong renovation at the 15 buildings.
Financing for two of the properties included the restructuring of their existing mortgages through the Department of Housing and Urban Development's (HUD) Mark-to-Market program, and the third property included the repurchase and extension of a ground lease that was sold to the city. In addition, the total purchase price included the settling of payables owed by the properties.
Financing for the acquisition includes tax credit equity from Phoenix Realty Group, tax-exempt bonds and subsidies from the New York City Housing Development Corp., and tax abatements and subsidies from the New York City Department of Housing Preservation and Development.