Heavy hitters have big plans to transform Yonkers complexes.
The developers will receive economic development incentives provided to the developers through IDA tax credits and bonds, the Industrial Development AGency announced.
Jefferson Terrace, a seven-story, 64-unit property located at 108 Jefferson St. in the Ludlow section, was acquired by Jefferson Terrace, LLC, a Scarsdale-based investment group including Mountco Construction and Development Corp., an experienced local builder/developer.
The property was purchased from Jefferson Terrace Housing Development Fund, Inc., for $500,000. The complex will be managed by Community Housing Management Corporation, a firm that manages more than 2,000 units of elderly housing including Grace House, Unity Gardens and Sandford Terrace in Mount Vernon.
The building is fully occupied, and no tenants will be relocated during a comprehensive renovation plan which includes the replacement of major building systems including the boiler, roof, windows, brick facade, and elevator. In addition, individual apartments will be modernized with tenants in place, or by "checkerboarding" tenants within the property. Total capital improvements to development will be $3,500,000. The acquisition and renovation of Jefferson terrace will be funded principally with 4% tax credits and tax-exempt bonds issued through the Yonkers IDA.
Ellen Lynch, president & CEO of Yonkers IDA, said, "The project is intended to meet the growing need for affordable rental housing in Yonkers. Our city is undergoing an economic renaissance, and in order to sustain our growth, we must provide adequate, modern housing for our resident workforce. Our IDA incentives are an investment in our future."
Vaughn's partnership--Whitney Young Manor, L.P., an affiliate of Omni New York LLC and Mill Plain Properties, LLC,--paid $17 million for Whitney Young Manor at 358 Nepperhan Avenue.
The property consists of two buildings comprising 195 rental apartments.
The buyer plans to invest an additional $9 million in major capital improvements to the complex, including renovation of lobby areas, new elevators and the replacement and upgrading of building mechanical systems. In addition, $300 per unit per year will be set aside in a replacement reserve to be used as needed for additional capital improvements. Whitney Young Manor is 90% occupied, and no tenants will be displaced during the renovation period.
The project is funded through an issuance of multi-family mortgage revenue bonds issued by the Yonkers IDA and 4% low-income housing tax credits issued by the New York State Division of Housing and Community Renewal.
Lynch, added, "We are delighted that Yonkers is now attracting the attention of major residential real estate developers such as Omni and Mountco. This is an indicator that the city is on regional and national radar screens as a place to invest in real estate."
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|Comment:||Heavy hitters have big plans to transform Yonkers complexes.|
|Publication:||Real Estate Weekly|
|Date:||Feb 14, 2007|
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