81-Unit Sinclair Houses in Hamilton Heights Will Receive a $2.3 Million Upgrade
 

The Property Benefits from a Project-Based Section 8 Contract Which Will Ensure Its Rental Affordability for At Least the Next 20 Years

New York, January 7, 2013 – Preservation Development Partners, a joint venture of developers Donald Capoccia, Joseph Ferrara, Brandon Baron, Francine Kellman and Brian Raddock, announced today the acquisition of Sinclair Houses, an 81-unit rental complex in the Hamilton Heights section of Manhattan.

The two-building property, located at 502 and 528 West 151st Street, was purchased for $15,075,000. The new owners have planned for an additional $2.3 million in capital improvements to the property. Sinclair Houses contains five studio apartments, 35 one-bedroom units, 35 two-bedroom units, 5 three-bedrooms, and a superintendent’s unit.

All 81 units at the project will be set aside for tenants earning no more than 60% of Area Median Income (AMI).

Sinclair Houses benefits from a Project Based Section 8 Contract (HAP Contract) which will be renewed for 20 years. The Section 8 Contract, which subsidizes tenants’ rental payments, will supply the community with quality affordable housing. The project also benefits from close proximity to public transportation, parks, and hospitals.

Ms. Kellman, PDP principal, said, “Hamilton Heights has been transforming into one of the most desirable places in New York for new development. With developments sprouting throughout the area, it is being viewed by many as the new extension to the Upper West Side of Manhattan. With key development incentives such as tax breaks, rezoning, and an excellent public transportation network, this part of Upper Manhattan has become a highly attractive place to invest and develop.”

Mr. Raddock, PDP principal, said, “The purchase and rehabilitation of Sinclair Houses through the use of tax-exempt bonds, and the benefit of new 20 year HAP Contract will eliminate the risk of 81 affordable housing units in Manhattan from being converted to market rate units. With a limited supply of affordable housing in the New York area and high demand for housing in general, this project will preserve affordable housing in Hamilton Heights and provide a long-term benefit to the community.”

The rehabilitation construction, valued at approximately $29,000 per unit, will begin imminently. No tenants will be displaced during the construction, which is expected to be completed in mid-2013.

The project will receive a significant upgrade with the repair and installation of new roofs, compactors, windows, facades, and elevators. The individual units will be upgraded with new kitchens and new bathrooms, electrical wiring, and paint.

Mr. Raddock added, “With these upgrades Sinclair Houses will provide comparable or better quality housing than other housing in the market area.”

Sinclair Houses financing was completed with tax-exempt bonds, credit enhanced by Freddie Mac through its Low Income Housing Tax Credit (LIHTC) Mod Rehab program. The project was also capitalized with equity from an investor in the project’s 4% low income housing tax credits.

Preservation Development Partners is a partnership formed by K&R Preservation and BFC Partners. K&R is owned and operated by its principals, Ms. Kellman and Mr. Raddock. Together, they have acquired and rehabilitated a growing portfolio of affordable multifamily properties, including Trinity Apartments in the Bronx and East River Apartments in Manhattan’s East Harlem neighborhood. Prior to forming K&R, Ms. Kellman and Mr. Raddock closed on two affordable housing properties in the Bronx and Manhattan for a Seattle based developer. They oversaw the complicated rehabilitation and positive transformation of the Manhattan property, Lexington Courts, which, when acquired consisted of nine buildings in various states of deterioration.

BFC Partners is owned and operated by its three principals, Messrs. Capoccia, Ferrara and Baron. The essence of BFC’s activities over the past 25 years has been the acquisition, development, financing, construction, marketing and management of affordable housing, which includes government subsidized low and moderate-rental as well as for sale home ownership. BFC and its principals have concluded over $550 million in acquisition and development projects since the firm’s inception. The construction contract amount for those projects exceeds $350 million and encompasses the construction of 4,000 units ranging from single family newly constructed units in Long Island to the substantial rehabilitation of multi-site, multiple dwellings with over 120 units, to smaller scattered site projects requiring the substantial rehabilitation of 6 to 17 unit buildings.