Fairstead invests $20 million to renovate 710 affordable housing residences

Bronx, NY Fairstead, a national, vertically integrated real estate company, has finalized a $20 million investment to renovate 710 affordable housing residences across 19 buildings. The effort utilizes the New York City Department of Housing Preservation and Development’s (HPD) HUD Multifamily 420-c program, in partnership with HPD. Collectively, the initiative reflects a forward-thinking model for preserving affordable housing through creative and collaborative public-private financial structures while also expanding resident services.

The 710 residences undergoing renovation are part of a Section 8 portfolio encompassing nearly 2,000 homes across 48 buildings. Fairstead, in partnership with Invesco Real Estate, acquired the communities in 2021 in one of the year’s largest affordable housing transactions in New York City. 

All residences in the development are protected by project-based Section 8 contracts, guaranteeing long-term affordability for households earning up to 50% of the Area Median Income (AMI). 

“This effort sets a precedent for preserving rental housing long-term while maintaining affordability for our Bronx community,” said Jeffrey Goldberg, CEO of Fairstead. “By utilizing innovative financial tools through public-private partnerships, we’re improving these homes for the future and strengthening our commitment to reinvest in the communities we’re proud to be a part of.”

Ocean Lo, director, development at Fairstead, said, “We are deeply grateful for the support and guidance from HPD throughout this closing process. Thanks to their leadership and financial assistance, Fairstead, alongside our partner Invesco, can now move forward with these much-needed rehabilitation projects.”

The $20 million in financing will support renovations of 301 homes across 11 buildings in the Linden Apartments community. It will also fund upgrades to 409 homes across eight buildings in the Locust Apartments community, totaling nearly 700,000 s/f of improvements across the two developments.

Built in the early 1900s, the Linden Apartments and Locust Apartments upgrades will include extensive façade repairs and interior improvements. Beyond the physical upgrades, residents of the two clusters will benefit from new services and social spaces on-site that foster community and enhance day-to-day quality of life. In partnership with the Settlement Housing Fund, these supplemental offerings include food pantry referrals, benefits enrollment support, ESL class referrals, and referrals for fitness and recreational programming, as well as sponsored social events at the two developments. Additionally, a 5,000 s/f courtyard within the Linden Apartments community will undergo extensive renovations as part of the landscaping plan, enhancing residents’ access to outdoor space. 

“The mission isn’t just about how much new supply we bring online, it’s about how much of our existing supply we invest in to make it stable, keeping people rooted, secure, and supported,” said acting HPD commissioner, Ahmed Tigani. “At HPD, we’re often known for the milestone moments: putting shovels in the ground and cutting ribbons on newly built, deeply affordable housing. But just as critical is the work we do every day to preserve the homes New Yorkers already live in. Through this effort, and in partnership with Fairstead, HUD, and Settlement Housing Fund, more than 700 apartments across the Bronx will undergo major renovations, helping longtime residents, many of them families who’ve built their lives here over decades, remain in the communities they love and call home.”

Tigani’s team provided essential guidance and support in structuring the transaction within the city’s affordable housing framework. 

Fairstead’s Bronx Portfolio properties include deeply affordable apartments serving low-income and formerly homeless New Yorkers. The strategic acquisition marked a significant milestone for Fairstead, reinforcing its mission to uphold long-term affordability in some of the city’s most vulnerable neighborhoods. Fairstead implemented a strategy focused not only on ownership but on reinvestment, enhancing property operations, initiating capital improvements and working closely with public-sector partners to support resident stability and community well-being.

“Ensuring access to quality, affordable housing is a top priority for our community,” said Rafael Salamanca Jr., New York City Council, District 17. “Fairstead’s holistic approach to rehabilitation demonstrates a meaningful investment in the Bronx, and I commend all partners involved for their dedication to improving the lives of New Yorkers.” 

Additional financial partners of this critical renovation project, alongside HUD, HPD and equity partner Invesco Real Estate, include senior lender Berkadia and Freddie Mac. 

Fairstead will continue to serve as the owner, developer, and managing partner for these properties. Renovations at both Linden Apartments and Locust Apartments are scheduled for completion by Summer 2027.