A firm focused on preserving affordable housing has acquired a 179-unit Harlem complex for $36 million, Crain’s reported, and renewed its Section 8 contract.

The complex, known as the East River Apartments, is comprised of five buildings at 109-125 East 130th Street and was sold by Tricham Housing Associates, public records show, after 28 years of ownership.

Its Section 8 contract was set to expire this year but, consistent with new owners Preservation Development Partners’ mission of preserving affordable housing, it was renewed. Preservation Development, which is a partnership between K&R Preservation and developer BFC Partners, plans to spend $14 million to repair the complex, and $31,000 per apartment for upgrades. The $50 million total cost of the project is being financed by tax-exempt Housing Development Corp. bonds, Freddie Mac Low Income Housing Tax Credit Mod Rehab and Wells Fargo.

East River Apartments is Preservation Development’s second acquisition in the city. Last year it paid $9.8 million for a Section 8 complex in the Bronx. It’s in contract for another affordable housing complex it expects to close on in June.

http://therealdeal.com/blog/2012/01/06/preservation-development-buys-east-river-apartments/