SURREY CARLTON APARTMENTS

Surrey Carlton Apartments, a 176-unit rental complex located at 45-47 Ewing Avenue in Spring Valley, NY, was purchased by Preservation Development Partners in August 2012 for $23.5 million.  The firm contributed an additional $4.7 million in capital improvements to the property.  The four-building complex was built in 1965 and contains 32 one-bedroom units, 134 two-bedroom units, 8 three-bedrooms, and 2 five-bedrooms.  Preservation Development Partners installed new metal stairwells.  Hallways and individual units received sheetrock repairs, fresh paint, and new flooring finishes.  Individual units received electrical wiring, lighting upgrades, and new kitchen appliances along with stainless steel sinks and new cabinets.  Bathrooms were completely rebuilt, as well.  Financing for the acquisition of Surrey Carlton Apartments was provided by tax-exempt bonds issued by the New York State Housing Finance Agency (HFA), and a Freddie Mac Low Income Housing Tax Credit (LIHTC) via its Mod Rehab program.  The project was also capitalized with equity from Wells Fargo in the project’s “4%” low income housing tax credits.  The property benefits from a Project-Based Section 8 Contract (HAP Contract) which will be renewed for 20 years.  The Section 8 contract will limit the vacancy risk for the new owners and it will preserve much-needed affordable housing in the Spring Valley community.