Berkadia Secures Over $71M in Financing for Affordable Housing Property in New York City
NEW YORK – December 17, 2024 – Berkadia announced today the financing secured for Frederick Samuel Apartments, a 664-unit, midrise affordable housing property located in New York, New York. Managing Directors Heather Olson and Matthew Baptiste secured $71 million in permanent acquisition financing on behalf of New York-based Genesis Companies and Lemor Development.
The 30-year permanent financing was facilitated through Freddie Mac’s Bond Credit Enhancement (BCE) program. Berkadia will also service three tranches that total $93 million of senior debt on the property. The financing was a joint effort between The New York City Housing Authority (NYCHA), the New York Housing Development Corporation (HDC), Berkadia, Freddie Mac, and Goldman Sachs through NYCHA’s PACT Program. The PACT program combines HUD’s Rental Assistance Demonstration (“RAD”) Program, HUD’s Project Based Rental Assistance (Section 18), and Public/Private Partnerships to ensure the extensive rehabilitation and long-term preservation of affordable housing in New York.
“The Frederick Samuel Apartments represents a pivotal moment for affordable housing in Harlem, further demonstrating the power of community-driven development and investment,” said Olson. “With the transformation of more than 660 homes, this initiative will provide much-needed renovations and resources to the community, which will improve the quality of life for thousands of residents in Harlem.”
Berkadia Affordable Housing arranged financing to address the ongoing operation and maintenance needs of the 40 residential buildings that comprise Frederick Samuel Apartments. The team successfully strategized solutions that fit the needs of its clients, Genesis Companies, Lemor Development, and NYCHA. In partnership with Freddie Mac, the team successfully structured the deal, which allowed the development team to finance much needed upgrades for low-income residents on West 144th Street.
“We are honored to have played a role in delivering this landmark deal in New York, which will positively impact thousands of deserving residents,” said Matt Baptiste, Managing Director at Berkadia. “Our heartfelt gratitude goes out to our clients, Genesis and Lemor Development, as well as the many partners who played a vital part in making this possible.”
“It’s been an honor and privilege to work alongside the residents of Frederick Samuel Apartments to plan out how we can transform their homes and provide the quality-of-life improvements they deserve,” said President and CEO of Genesis Companies Karim Hutson. “Genesis’ commitment to sustainable community development is at the core of everything we do, and we’re thrilled to enter this new chapter alongside our partners at Lemor Development, NYCHA and Berkadia to bring these investments to fruition for the residents of Fred Sam and the surrounding Harlem community.”
“NYCHA’s PACT program continues to show how true partnership with residents and development partners can bring comprehensive investment to our communities,” said NYCHA Executive Vice President for Real Estate Development Jonathan Gouveia. “Residents at Frederick Samuel Apartments will soon see repairs that they have advocated for and deserve. We look forward to seeing the transformative work in this community begin.”
Located in Harlem, Frederick Samuel Apartments features a variety of floor plans with new lighting, flooring, windows with air conditioning units, closets, free broadband internet, as well as bathroom and kitchen renovations, including new appliances, fixtures, countertops, cabinets, tubs, and showers. Existing outdoor spaces will be renovated with a combination of passive park spaces, actively programmed urban farms, a renewed playground, and community gardens provided by Harlem Grown. The property affords residents convenient access to Yankee Stadium, NYC Health + Hospitals, the Bronx Museum of the Arts, Central Park, and the Upper West and East sides of Manhattan.
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