The seller was NYU Langone, a hospital system with many buildings located adjacent to the site.
The property consists of two interconnected, 14-story towers in the Bay Ridge section of Brooklyn totaling 414,127 square feet. The property was built in 1977 and sits on 2.7 acres along Shore Road. The unit mix includes 325 studios and 233 one-bedrooms.
The buyers financed the acquisition with a $102 million Freddie Mac loan arranged through PGIM Real Estate Finance. The Rose Affordable Housing Preservation Fund IV LP, along with joint-venture partner NHP and Nuveen, will invest $52 million of equity in the property.
“We are making a long-term investment to preserve an important affordable housing property for seniors with a conventional debt and private equity execution,” says Joshua Plattner, who led the acquisition for Rose.
The venture will invest in capital improvements to increase energy efficiency, reduce the carbon footprint and enhance the resident services at Shore Hill as part of Rose’s Communities of Opportunity programming.
“We are excited about the opportunity to drive capital into this Brooklyn neighborhood, preserving a significant number of affordable units and improving the living standards of the residents in these buildings,” says Pamela West, senior director with Nuveen’s impact investing team.
Jonathan Rose is a developer of sustainable, affordable and mixed-income multifamily properties with seven regional offices nationwide. New York City-based NHP is a nonprofit affordable housing provider for seniors and families. Chicago-based Nuveen is the investment manager of TIAA.
Rose Community Management, an affiliate of Jonathan Rose Companies, will take over management of the community. NHP’s resident services affiliate, Operation Pathways, will oversee the provision of services, which currently includes operation of a community center, onsite transportation services, and resident service coordination to connect residents to other local health, wellness and support services.
— Kristin Hiller and Jeff Shaw