HPD secures $75M, 11-building West Farms portfolio
2088 and 2090 Mohegan avenues. Courtesy of Russell Murphy
BY ALEX MITCHELL
A major real estate deal has just been
locked-down for the Bronx.
The NYC Department of Housing
Preservation and Development, collaborating
with Camber Property Group,
Belveron Partners, closed on a $75 million
acquisition of an 11-building, 343-
unit portfolio in West Farms on Wednesday,
January 2.
The purchased properties are comprised
of two separate clusters of midrise
buildings at: 1892-94 Arthur Avenue,
1898, 1899, 1908, 1900 Belmont
Avenue, 2082, 2083, 2088, 2090 Mohegan
Avenue, and 2095 Honeywell Avenue.
This major capital investment also
received tremendous support from
Councilman Rafael Salamanca, Jr.
“Maintaining affordability in communities
experiencing rapid development,
like the one I represent, is incredibly
important to me,” he said, adding,
“I strongly believe in responsible development
that builds and preserves
affordable housing for my community
and this project does just that.”
This transaction was made in an effort
to restore long-term affordability to
the properties, which had seen its rent
increase restrictions terminated by
prior ownership according to offi cials
involved in the project.
These mid-rises which were previously
part of Section 8 assisted housing,
were converted into deregulated
buildings over time, losing 100 affordable
units. Through this public-private
partnership, those 100 lost units will
be returned to rent regulation as well
as the remainder of the portfolio for 40
more years.
“We’re thrilled to preserve hundreds
of affordable housing units in
West Farms, including many that had
already left regulation,” said Rick
Gropper, principal at Camber Property
Group.
Gropper went on to commend the
partnership, saying that these upgrades
will have the units remain affordable
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for “decades to come.”
Per the terms of the new agreement,
all of the portfolio’s units will be rented
to individuals and families at varying
affordability levels to foster a mixed-income
community. The circumstances of
the deal are unique for the city, as buildings
scarcely return to rent regulation
once they become deregulated, Camber
offi cials said. Financing was provided
by New York Community Bank.
“This is our prodigal project with
so many needed homes returning to
affordable protections,” said Louis A.
Harrison, principal at Belveron Partners,
calling the deal an ideal example
of public and private partnerships.
The new owners will immediately
embark on a $4 million capital improvement
program to upgrade the buildings’
mechanical systems, roofs, common
areas, and security and access
control systems.
Prior ownership of the former project
based Section 8 buildings chose to
forego a new affordability structure
when the previous restrictions expired
in 2010. The owner instead began to convert
the units into free-market rate housing
and subsequently sold the buildings
to a second owner who continued to convert
apartments once tenants vacated.
Resulting in the lose of 100 market rate
units throughout the portfolio.
HPD commissioner Maria Torres
Springer explained how this type of
preservation is the ‘cornerstone’ of the
mayor’s housing plan, mentioning that
the city is using every tool, leaving no
stone unturned, in our effort to keep
New Yorkers in their homes and communities.”
“We thank our partners at Camber
and Belveron for working with us to
bring these properties back into the fold
as rent-regulated affordable housing,
ensuring that hundreds of hardworking
families get the improvements they
need and the security of knowing that
they’ll be able to stay in their homes for
years to come,” she said.
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