Pacific Housing Advisors launches $52 million preservation project for Lexington Courts

Pacific Housing Advisors has acquired and launched the preservation of Lexington Courts, a 9-building, 229-unit multifamily apartment complex in East Harlem at a total cost of $52 million, according to Francine Kellman, director of the company's newly established New York office. The deteriorating property had initially been earmarked by a competing buyer for future market rate housing when the dynamic Harlem residential market rebounded. But that transaction faltered, and Pacific, working in cooperation with a local social services group and councilmember Melissa Mark-Viverito, was able to move forward instead with its rescue effort. The units will remain affordable to tenants earning no more than 60% of the area median income. "This neglected and troubled property had no major improvement for 35 years and was in danger of going into foreclosure once the luxury bid failed. Either result would have been tragic. This essentially sturdy structure has the potential to serve current and future low-income New Yorkers for many decades to come. We are pleased to have the opportunity to improve and maintain this precious East Harlem community resource," said Kellman. Teresa Bainton, director of the New York Multifamily Hub, U.S. Department of Housing and Urban Development, said, "Lexington Courts serves as a national model for the preservation of affordable housing in urban centers, where gentrification can lead to the displacement of hard working, lower income families. Having the peace of mind that your home will remain affordable brings a sense of stability to entire neighborhoods." Acquisition and rehabilitation financing was provided by the New York City Housing Development Corporation (HDC) through HDC bonds, with additional funding provided by the New York City Department of Housing Preservation and Development (HPD). "The gentrification taking place in East Harlem over the past five years has created a strong demand for new housing. Keeping families and communities together in stable and safer neighborhoods is the solution of preserving developments in East Harlem," said Marc Jahr, president of HDC. The buildings will be upgraded with new elevators, roofs, windows, boilers, heavy duty re-wiring, trash compactors, flooring and matching new masonry facades. All units will be improved with new bathrooms, and half will receive new kitchens. All buildings will have new laundry rooms - there were none before. The entire project will also benefit from a new computerized security system. The Lexington Courts complex is located between Lexington and Third Avenues and East 118th and 122nd Sts.. The 229-unit project includes one studio unit, 44 one-bedroom units, 117 two-bedroom units, 40 three-bedroom units, 22 four-bedroom units, five non-income generating superintendent units, and eight commercial spaces. It consists of 2 four-story, 2 five-story, and 5 six-story buildings. Grenadier Realty Corp. will be the property manager for the project. MDG Design & Construction will be the general contractor for the rehabilitation.