Merchants Capital secures $231 million for 877-unit
NYCHA PACT renovation of Eastchester Gardens

Bronx, NY Merchants Capital secured $231 million in total financing for the renovation of Eastchester Gardens, a $391 million New York City Housing Authority (NYCHA) Permanent Affordability Commitment Together (PACT) project that spans 10 residential buildings. Eastchester Gardens is one of the oldest public housing developments in New York City and the second oldest in the borough.

Among the financing Merchants Capital secured was a $221.7 million 30-year Freddie Mac CME permanent loan it provided for the development. All units will be restricted to individuals at 60% area median income (AMI).

Eastchester Gardens will be listed on the National Register of Historic Places, enabling the use of federal historic tax credits to support the project’s revitalization through the NYCHA PACT program.

“Preserving infrastructure and long-term affordability is a cornerstone of this deal, and we are very pleased to provide critical financing to meet this need,” said Mat Wambua, vice chairman at Merchants Capital. “Improvements of this scale will have a tremendous impact on the lives of Eastchester Gardens’ residents. We celebrate the collaboration and innovation demonstrated by all partners to create a comprehensive affordable housing solution for the broader community in The Bronx.”

Eastchester Gardens is being developed by the PACT partner team of MDG Design + Construction (MDG), Infinite Horizons and Wavecrest Management. The partners will address the capital needs of the development and fully rehabilitate all apartments, shared spaces, grounds and building infrastructure.

Historic elements and the original campus design will be preserved, which includes upgrades to heating and cooling systems, plumbing, new lighting (including LED additions) and flooring, electrical systems, kitchens and bathrooms. Americans with Disabilities Act (ADA) compliance and improvements to community and outdoor spaces are also planned.

MDG specializes in the rehabilitation and new construction of residential apartment buildings in New York City and Long Island with a focus on affordable housing. Minority Business Enterprise (MBE) affordable housing development firm Infinite Horizons specializes in moderate and substantial rehabilitation and the new construction of residential mixed-use buildings. Wavecrest Management is one of the largest management companies in New York City, with more than 40 years of experience in providing opportunities that improve residents’ lives.

“Through NYCHA’s PACT program, the revitalization of Eastchester Gardens stands as a powerful example of what’s possible when public and private partners work closely with residents to preserve affordability and invest in meaningful change. At the heart of this transformation is the Eastchester Gardens Tenant Association, whose leadership and engagement helped to shape each phase of the project, from design decisions to specialized social services and amenities,” said Susan Camerata, chief financial officer of Wavecrest Management and principal of RDC Development.

“The development team — including Infinite Horizons, Wavecrest Management and MDG Design & Construction — has worked hand-in-hand with the Eastchester Gardens Tenant Association through countless meetings, workshops, and site tours to ensure their voices guide the process. We know that consistent, transparent communication is the key to delivering real impact and we look forward to our continued partnership with the Eastchester Gardens Tenant Association, the broader resident community, NYCHA and all our partners,” said Matthew Rooney, chief executive officer of MDG Design & Construction and principal of RDC Development.

“Infinite Horizons is proud to be part of PACT for Eastchester Gardens,” said Infinite Horizons co-founder and principal Roland Powell Jr. “This endeavor, which will enhance the quality of life for nearly 2,000 residents across 877 units through extensive renovations, improved property management, and expanded social services, aligns closely with Infinite Horizons’ mission to preserve and expand affordable housing opportunities throughout the Bronx. We are excited to collaborate with tenant leadership, MDG and Wavecrest Management as our partners, as well as NYCHA, to bring this project to fruition. We believe this partnership highlights the power of cross-sector collaboration by positively impacting communities through these developments.”

Congratulations to the residents at Eastchester and our PACT partners for reaching this important milestone,” said NYCHA executive vice president for real estate development Jonathan Gouveia. “Our partnership together ensures that Eastchester will be restored as a place of pride for the community and that the investments made reflect the priorities of the people who live there. This project is a great example of how collaboration can lead to real results for our NYCHA community.”

The revitalization will also enhance existing community assets, including the Community Center and Senior Center, operated by Neighborhood Initiatives Development Corp. (NIDC) and Regional Aid for Interim Needs (R.A.I.N.). Through a partnership with BronxWorks, it will introduce new onsite supportive services, including individual case management and group programming, counseling, mental health referrals, benefits enrollment assistance and financial education, employment training, job placement assistance and nutrition resources.

Construction on Eastchester Gardens is in progress and anticipated to be completed in the next few years.