LIHC, Camber and Settlement Housing to preserve Lexington Ct. affordability: $85m acquisition
Manhattan, NY LIHC Investment Group, in partnership with Camber Property Group and Settlement Housing Fund, completed -the $85 million acquisition of Lexington Ct. in East Harlem, a nine-building complex that features 229 units of affordable housing. Under the terms of the deal, the new owners extended the portfolio’s Section 8 Housing Assistance Payment (HAP) contract, which combined with city-backed regulatory agreements, will maintain the properties as restricted-income housing for at least the next 40 years.
To finance the acquisition, the partnership executed a $73.1 million FHA risk-share loan with the New York City Housing Development Corporation (HDC) and supplied $11.5 million in developer equity. Across the properties, LIHC and Camber will undertake $10 million in updates to infrastructure and systems to offer residents more livable and comfortable spaces. This includes substantial plumbing and electric upgrades, a new security and intercom system, masonry and façade repair, as well as common area improvements. As a result of the regulatory agreements entered into by the new owners, current and future residents will contribute no more than 30 percent of their monthly adjusted income toward rent.
Together, LIHC and Camber are significant owners of income-restricted housing across the city and are committed to maintaining it for the long-term as affordable housing in partnership with federal, state and local housing agencies. Most recently, the firms have worked to rehabilitate and preserve Bronx Park, an eight-building portfolio consisting of 1,275 affordable units in Crotona/West Farms; Stevenson Commons, a nine-building portfolio featuring 948 units in the Soundview area of the Bronx; and 314 homes at Carol Gardens, also in Soundview.
Spanning nine individual properties that range from four to six stories in height, the Lexington Ct. portfolio is located primarily along East 118th and East 119th St. on either side of Lexington Ave. The buildings were largely built in 1920 and contain 224 affordable apartments, which consist of one studio, 44 one-bedroom units, 117 two-bedroom units, 40 three-bedroom units and 22 four-bedroom units, plus five superintendent units for a total of 229 units.
“This transaction protects a substantial number of affordable units so they may continue to serve the East Harlem community while allowing for renovations that will greatly benefit longtime residents of these nine buildings,” said Andrew Gendron, principal, LIHC Investment Group.
“There are very few asset classes with more proven resilience and staying power than affordable housing and competition for deals in the five boroughs remains extremely high. Thanks to our long history and reputation in the industry, we feel well-positioned to act on acquisitions such as this one, even as more and more players flock to the space.”
“We wish to thank HUD, HDC and HPD for their continued support, as well as Camber Property Group for joining us in this effort,” Gendron said.
“Through our partnership with LIHC Investment Group, we look forward to preserving and renovating Lexington Ct. to deliver the highest quality housing to the residents of East Harlem,” said Rick Gropper, principal and co-founder of Camber Property Group. “By preserving affordability, we ensure the city is accessible for everyone, especially in this community.”
“We are proud to be a part of this project, with LIHC Investment Group and Camber Property Group, which will preserve a significant number of high-quality affordable apartments for residents of the East Harlem community,” said Alexa Sewell, president of Settlement Housing Fund. “Preserving and extending affordability in projects like Lexington Ct. is crucial for affordable housing efforts in New York City.”