A joint venture between Nelson Management Group and The Vistria Group, with the former as managing general partner, has recapitalized Lafayette-Boynton Apartments and Promenade Apartments, a pair of affordable housing assets in the Bronx, N.Y. Also providing financing for the transaction were Freddie Mac and KeyBank. Nelson Management will continue managing the 1,290 affordable units that make up the two properties.
The greatest obstacle facing the joint venture in the transaction was “obtaining the debt at an interest rate that made economic sense for the price that was being paid,” Robert Nelson, president of Nelson Management, told Multi-Housing News. He added a single act made it possible to surmount that challenge. “Patience.”
Building a rapport
Situated at 825-875 Boynton Avenue and 820-880 Colgate Avenue, Lafayette-Boynton Apartments is a collection of four 19-story towers featuring 972 apartments. More than $25 million in capital improvements have been injected into the property. They include upgraded elevators, lobbies, hallways, roofs, security systems and gyms, as well as unit upgrades. The property stands across the street from Soundview Park.
At 150 West 225th Street, in New York City’s Marble Hill neighborhood, Promenade Apartments is a 19-story, single-tower apartment community featuring 318 units. Capital improvements and efficiency endeavors totaling $21 million have included a parking deck restoration, co-generation system, new lobby, hallways, gym and unit upgrades.
Having forged a rapport with the apartment community residents during the decade-plus it has owned the properties, Nelson Management Group intends to hold onto the buildings well into the future.
In a prepared statement, a Nelson Management official reported officials of The Vistria Group share its dedication to building relationships with residents. Daniel Parker and Will Silverman of Eastdil Secured worked on both sides of the transaction. Several months ago, a $72 million affordable project got underway in the Bronx.
