[February 17, 2016 New York, NY] – Hudson Valley Property Group and Phoenix Realty Group (PRG) have partnered to acquire, renovate, and preserve 612 units of formerly at-risk Mitchell-Lama workforce housing apartments in the Bronx, New York. The properties acquired are the 311-unit, 30-story, Keith Plaza, located at 2475 Southern Boulevard, and the 301-unit, 17-story Kelly Towers, located at 2375 and 2405 Southern Boulevard. The renovation will exceed $14 million and includes significant energy efficiency enhancements, specifically better heating systems, replacing all lighting, critical repairs to the buildings, with upgrades to the lobbies, common areas, and apartments.

“This important project will ensure that working class families and retired seniors who reside here have a quality, affordable place to call home for years to come. We plan to follow the City’s lead and continue to work to preserve affordable housing throughout the five boroughs.” Jason Bordainick, Managing Partner, Hudson Valley Property Group.

Keith Plaza is one of the first four preservation projects in the nation utilizing the Rental Assistance Demonstration (RAD) program, which included the issuance of a new 20-year, Section 8 Project-Based Rental Assistance (PBRA) contract. The recent congressional approval of the use of these contracts is key to preserving more than 30 percent of the 1.34 million units in the program that are otherwise set to expire by 2017.

“At Keith Plaza, HUD’s Rental Assistance Demonstration program is proving its value as a flexible tool for renovating aging housing without sacrificing long-term affordability,” said Holly Leicht, HUD Regional Administrator for New York and New Jersey. “The top-to-bottom improvements that RAD makes possible will make these homes sustainable, safe and affordable for the next generation of New Yorkers.”

Financing was provided by the City of New York, including the New York City Housing Development Corporation and the New York City Department of Housing Preservation and Development, in addition to an equity investment provided by Belveron Partners, Hudson Valley and PRG.

“Keith Plaza and Kelly Towers together have provided quality affordable housing to generations of low, moderate, and middle income New Yorkers in the Belmont community of The Bronx.  Preserving such valuable resources is one of the most critical components of Mayor Bill de Blasio’s visionary housing plan,” said HDC President Gary Rodney.  “I commend Hudson Valley, Phoenix Realty, Belveron, and Dane for their collaboration with HDC, HPD, HUD, and the community to both preserve and build upon the Keith & Kelly legacy.”

“Preserving the remaining stock of Mitchell-Lama housing is a critical component of the Mayor’s Housing New York plan,” said HPD Commissioner Vicki Been.  “Through this financing, we will extend the affordability of Keith Plaza and Kelly Towers for another 35 years, while financing critical renovations that will promote the buildings’ long-term sustainability and improve the quality of life of more than 600 households.   We thank our partners at HDC, Hudson Valley Property Group, and Phoenix Realty Group for helping secure a stronger, more affordable future for these families and our City.”

“I have spent my career putting together long term private preservation capital for projects just like these.  Our industry needs alternatives to tax credit equity and our funds were delighted to step up,” said Paul Odland, Managing Partner, Belveron Partners.

“Preservation of existing properties is a critical component to meeting New York City’s need for affordable housing, and we really appreciate the Housing Development Corp’s substantial efforts and creativity in making this project work,” said Ron Orgel, Managing Director, PRG. “We are excited to bring PRG’s expertise in both market-rate and subsidized properties to the team and to continue our longstanding commitment to low- and middle-income housing.

Both properties are located in the Belmont neighborhood of the Bronx and are centrally located among the district’s distinguished schools including Fordham University, medical facilities such as world recognized St. Barnabas Hospital, and recreational facilities including the Bronx Park, the Bronx Zoo, and New York Botanical Gardens.


Additional Press: Globe Street, New York market feature news, “Two BX Mitchell Lama Towers Traded”