LIHC Investment Group Completes Acquisition of GP Interest in Multi-Family Property in Manhattan’s Nolita Neighborhood
A photo of an apartment building at 21 Spring Street in NoLita as seen from the street.
PRESS RELEASE – March 6, 2020
Little Italy Restoration Apartments contains 152 apartments and is home to many longtime residents and seniors
NEW YORK CITY (March 6, 2020)—LIHC Investment Group today announced that it has closed on the acquisition of general partner interests in Little Italy Restoration Apartments, located at 21 Spring Street in Manhattan’s Nolita neighborhood. The Maine-based firm, which is committed to the preservation of affordable housing, paid $43.9 million for the 184,900 square feet property containing 152 residential units. In connection with the transaction, LIHC and HUD entered into a new 20-year regulatory agreement to extend the property’s existing Section 8 contract through 2043.
“We are delighted to use our expertise to preserve LIRA as affordable housing in a community that desperately needs it,” said Andrew Gendron, Principal at LIHC Investment Group. “The suite of improvements and upgrades planned for the property will benefit the many seniors and longtime residents who call LIRA home, while extending the service life of the building. Transactions such as these require the support of many partners, and we’d like to thank our regional HUD office and Rockport for continuing to work with us to preserve affordable housing in the five boroughs.”
Financing in the form of an FHA Section 223(f) refinancing loan was provided by Rockport Mortgage Corporation. Funds will be used to complete capital improvements and improve the quality of life for the building’s residents. This includes upgrades to all kitchens with new granite countertops and stainless-steel appliances. Units will undergo bathroom renovations that include new vanities, medicine cabinets, sinks, faucets, bathtub surrounds and tile flooring. Vinyl plank flooring will be installed throughout apartment kitchens, living rooms and hallways.
“Rockport Mortgage is pleased to once again partner with LIHC to preserve quality, affordable housing across the region,” noted Dan Lyons, Managing Partner of Rockport Mortgage Corporation. “It’s well-known that there is a serious shortage of affordable housing stock in the country at this time. HUD has crafted these FHA preservation programs to assist multifamily property owners in conserving the existing stock of affordable housing. Working closely with a partner like LIHC, who truly understands the benefits of these preservation programs, as well as with the local New York HUD Office, enabled us to secure the long-term affordability of this property.”
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