Besen & Associates Sells North Manhattan Five-Building Affordable Complex for $36 Million

Besen & Associates has recently completed the sale of The East River Apartments complex, a 179-unit residential complex in East Harlem. The five building complex is located at 109-125 East 130th Street at Lexington Avenue and sold for $36 million in an off-market transaction. Matthew Eliassi of Besen & Associates was the sole broker.

 

The seller had owned the property for 28 years, and sold it to a firm focused on acquiring and preserving affordable housing across the city.  The purchaser has indicated that the complex will remain a Section 8 affordable housing development for at least 20 more years and that they intend to invest in repairs and improvements. The complex's Section 8 contract was set to expire this year if the new owner did not renew it.

 

The $50 million project, which includes both acquisition and development costs, was financed by tax-exempt bonds issued by the city Housing Development Corp. and a Freddie Mac Low Income Housing Tax Credit Mod Rehab program. Wells Fargo also provided some debt and equity financing.

 

“The $36 million price equates to a gross rent multiplier of 9, and a remarkable $201,000 price per unit,” stated Michael Besen of Besen & Associates. “This is a good deal for the seller and tenants alike, as the new owners will preserve and upgrade much-needed affordable housing,” Mr. Besen went on to say.