Berkadia Closes $219M Loan for Affordable Housing Rehab in Manhattan

Berkadia has closed a $219 million Fannie Mae loan to support the modernization of a 984-unit affordable housing community that was originally built in 1951 in Manhattan’s Washington Heights neighborhood. The 15-year permanent loan forms part of a $669 million capital structure that also includes an approximately $214 million subsidy from New York City and $94.5 million in federal and state historic tax credit equity.

Located at 159-16 Harlem River Drive, the 11-acre public housing campus, dubbed Rangel Houses, includes eight high-rise buildings and serves more than 1,800 residents. Berkadia Affordable Housing’s Matthew Baptiste and Heather Olson arranged the financing on behalf of Genesis Companies, which plans to move forward with comprehensive renovations that will modernize the apartments and preserve their affordability. The financing was completed in partnership with the New York City Housing Authority (NYCHA), the New York City Housing Development Corporation (HDC), and Goldman Sachs under NYCHA’s Permanent Affordability Commitment Together (PACT) program.

“With the current volatility in the interest rate markets, Berkadia, in partnership with Fannie Mae, structured a creative financing plan that ensured the permanent loan proceeds were kept intact,” said Managing Director Heather Olson of Berkadia Affordable Housing in a statement.

Image courtesy of Berkadia.