Siegel to keep $300M Bronx apartment portfolio affordable.

In a major commitment to New York City affordable housing, SG2 Properties, a real estate investment and management company, in two joint ventures with clients of BlackRock Realty Advisors, Inc., the real estate arm of BlackRock, Inc., announced the acquisition of 51 buildings throughout the Bronx for approximately $300 million.

Approximately 4,000 residential units were acquired in the transaction.

"Our acquisition demonstrates the ongoing emergence of the Bronx as an ever-improving residential environment," said Stephen B. Siegel of SG2. "We intend to make significant improvements in our buildings to ensure that existing tenants benefit from an enhanced quality of life while simultaneously positioning the Bronx as an attractive residential destination."

The 51 buildings are predominantly located in some of the most up-and-coming neighborhoods in the Bronx, including Yankee Stadium, Grand Concourse, Pelham Parkway, Marbel Hill, Mount Hope, Wakefield, Kingsbridge, Highbridge, Norwood and Fordham. The buildings also house approximately 80 retail locations.

"We plan to upgrade the properties' security, operations and infrastructure, including improvements to electrical and mechanical systems, while maintaining the apartments' position as affordable housing," said Noel S. Intner of SG2.

Peter McNally, a managing director and senior portfolio manager for BlackRock Realty, commented, "We look forward to working with our partners at SG2 to provide a high quality, dignified living environment for the residents of the Bronx. Quality housing is in extremely short supply in the Bronx today and through our collective efforts we intend to enhance the environment for residents of this historic borough and its underlying neighborhoods."

Coming on the heels of the recent groundbreaking of the new Yankee Stadium and The Related Companies' plan to construct a $394 million mega mall on the site of The Bronx Terminal Market just south of Yankee Stadium, the SG2 Properties' acquisition reflects the augmented strength, desirability and marketability of The Bronx as both a commercial and residential location.

Based in New York City, SG2 Properties was formed in 2001 by Stephen B. Siegel, Andrew S. Goldberg and Jeffrey C. Goldberg. The company invests in a wide range of commercial, retail and residential properties throughout New York City.