Market Overview

East Harlem Nonprofit, NERVE, Partners with Affordable Housing Developer, Hudson Valley Property Group, NCV Capital Partners, and Belveron Partners to Preserve 135 Units of Affordable Housing at Los Tres Unidos Apartments

Share:

$60M Million Preservation Effort Keeps Housing Development
Affordable for Decades to Come

New York City Housing Preservation and Development (HPD) and US
Housing and Urban Development (HUD) Key to Preserving Long-Term
Affordability

A partnership between Nuevo El barrio para la Rehabilitacion de la
Vivienda y la Economia, Inc. (NERVE), NCV Capital Partners (NCV),
Hudson Valley Property Group (HVPG),
Belveron Partners (Belveron)
are pleased to announce the closing of a $60 million transaction to
preserve Los Tres Unidos, a 135-unit multifamily affordable housing
development located on 112th Street and Madison Avenue in
East Harlem, Manhattan. The project was financed by substantial equity
investments provided by Belveron Partners and Hudson Valley Property
Group, and a Fannie Mae mortgage through Prudential. The property
remains subject to its U.S. Department of Housing and Urban Development
(HUD) Housing Assistance Payment contract, which allows tenants to pay
only 30% of their monthly income towards rent. The building occupancy
serves households making less than 50% Area Median Income (AMI).

"We are very proud to have provided our expertise and capital to help
NERVE retain its East Harlem community asset, an affordable property in
a vibrant community just a block from Central Park. We are grateful to
NERVE and NCV for selecting us as their partner, to Belveron for
continuing to be a reliable equity partner, and to New York City HPD and
HUD for utilizing its preservation tools to ensure the project remains
quality affordable housing for years to come," stated Jason
Bordainick, Managing Partner of Hudson Valley Property Group.

The new owner, a NERVE-NCV-HVPG partnership, plans to keep the property
affordable for the long-term, understanding the development's crucial
role providing quality housing for low-income residents in a rapidly
gentrifying Manhattan neighborhood. The NERVE organization was formed in
1975 and was one of the original developers of Los Tres Unidos. In 2017,
NERVE exercised its right-of-first-refusal (ROFR) when its partner
endeavored to sell. NERVE brought in new partners, NCV, HVPG, and
Belveron for immediate equity and acumen to match the competing offer
and secure the property for a January 2018 closing.

"When Robert Anazagasti of NERVE contacted NCV and expressed his
desire to exercise their ROFR and purchase Los Tres Unidos, I jumped at
the challenge of raising that much capital in the 30-days permitted
under the agreement.
By tapping NCV's network of operators and
investors we found the perfect partners in HVPG and Belveron to execute.

Of course, the real winners are the tenants of Los Tres Unidos who
will continue to live in high quality affordable housing in the emerging
neighborhood of El Barrio (East Harlem) as the project will remain
affordable for the foreseeable future," stated Keith Gordon, Managing
Partner of NCV Capital Partners.

"NERVE continues to provide low income housing and housing
preservation for our community of El Barrio/East Harlem," added Robert
Anazagasti, President and General Manager of NERVE Inc.

"We really love working in New York. There is a preservation
ethos here that permeates every opportunity we invest in.
Great
agencies, intrepid partners, sustainable properties, and delighted
residents.
Belveron appreciates our small role in this great
affordable housing ecosystem," commented Louis A. Harrison, Belveron
Partners.

The new ownership group will address immediate capital needs at the
property as well as energy efficiency upgrades and replacement of
security cameras throughout the development. Agency support for the
project was essential in executing the Los Tres Unidos preservation
acquisition and ensuring its long-term affordability. Specifically, New
York City and HPD assigned an Article XI tax abatement, and a new
project-based Section 8 contract was approved by HUD.

"One of HUD's top priorities is the preservation of affordable
housing and I congratulate everyone that has invested their time and
resources to ensure that the Los Tres Unidos Apartments remain
accessible to low-income families," said Lynne Patton, HUD Regional
Administrator for New York and New Jersey
.
"The HUD Housing
Assistance Payments Contract will guarantee these units remain
affordable for the next 20 years."

This marks HVPG's second New York City affordable housing investment
with Belveron. In 2015, the two firms acquired 600 units of low- and
moderate-income housing in the Bronx (Keith Plaza and Kelly Towers). The
purchase of Los Tres is the first transaction to be financed utilizing
equity raised through HVPG's private equity fund focused on the
acquisition of affordable housing, Hudson Valley-Preservation Fund
(HV-PF). As a result of these preservation endeavors, no residents were
displaced and the properties remain affordable for decades to come.
Additionally, preference on some Los Tres apartments has been reserved
for formerly homeless families.

Attorney firms that advised on the transaction include: Smith, Gambrell
& Russell, Broad and Cassel, Hessel Aluise & Neun, Nixon Peabody and VLP
Law Group.

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com