Related buys Mitchell Lama complex.

Related Apartment Preservation (RAP), a subsidiary of The Related Companies, LP, announced that it has purchased Ocean Park Apartments from the Ocean Park Company for $35M.

Ocean Park is an existing affordable housing development originally constructed in 1972 under New York City's Mitchell Lama Program.

Affordability was provided through rent regulation, real estate tax abatements and low interest rate loans. The Program's life was limited to 20 years, however, which has recently caused concern for Mitchell Lama residents as some owners have withdrawn their properties from the Program, thus reducing New York City's affordable housing stock.

RAP has been able to achieve its goal of preserving affordable housing through use of the following financing methodologies:

1. RAP has been approved for the use of $39 million of tax-exempt bonds provided by the New York State Housing Finance Agency. The bonds were credit enhanced by Fannie Mae for 30 years; and were underwritten by Bank of America. The mortgage loan services is American Property Financing.

2. In exchange for receiving the tax-exempt financing, RAP has agreed to extend the property's affordability for an 40 years.

3. The Section 236 mortgage interest subsidy from the U.S. Department of Housing and Urban Development is being maintained along with the rent and income limitations of that federal program.

4. Related Capital Company, a subsidiary of Charter Mac will invest almost $11 million in equity.

5. The property will benefit from the federal Low Income Housing Tax Credit program as provided for by the U.S. Department of the Treasury and administered by the New York State Housing Finance Agency. This program will further provide for restricted incomes and rents and long term affordability.

The new financing and equity infusion will enable RAP to invest extensively in property renovations including new roofs, new windows, a complete renovation of the outdoor concrete plaza, building facade repairs and interior and apartment renovations to improve the quality of life for the residents.

Ocean Park is a 602-unit multifamily rental housing development consisting of two 26-story towers and two single story commercial buildings located at 125 Beach 17th Street, 120 Beach 19th Street, and 1721-1731 Seagirt Boulevard in Far Rockaway, Queens. The Project was originally built in 1972 and contains on-site parking with 329 covered garage spaces and 95 outdoor parking spaces, a swimming pool, playground area, community room and laundry facilities in each building.

The Project includes two one-story commercial buildings located on Seagirt Boulevard. The buildings contain 5 fully occupied retail units which include a drug store, bank, convenience store, sit-down restaurant and medical office.