LIHC Investment Group Secures $71M for the Acquisition and Preservation of Marble Hall Apartments
A critical source of affordable housing for the Tuckahoe community will be protected through 2060
WESTCHESTER, NY (May 10, 2021) — LIHC Investment Group and Silver Street Development Corporation today announced $71 million in financing to acquire and preserve Marble Hall Apartments, a rental community serving 134 low-income households in Tuckahoe, New York. In line with the $54.5 million purchase, the firms have agreed to maintain the property as affordable housing through at least 2060 while investing $5.78 million in upgrades and improvements over the next ten months.
“The preservation of Marble Hall guarantees the availability of affordable, healthy homes well into the future while providing peace of mind for our residents during a time of uncertainty for many American families,” said Andrew Gendron, Principal, LIHC Investment Group. “This deal was truly a team effort, from the sellers to the many public and private partners who rolled up their sleeves to make this intricate transaction a reality. We applaud all parties for working to ensure our existing stock of affordable housing is both protected and improved.”
“We are extremely pleased with the successful acquisition and long term plans we have put in place for Marble Hall, not only for the residents who call the property home, but for the Village, Town and County as a whole,” said Chris Poulin, COO of Silver Street Development Corp.
“Today’s announcement is an incredible victory, securing quality affordable housing for 134 families in Tuckahoe through the year 2060,” said Stephen Murphy, HUD Deputy Regional Administrator for New York and New Jersey. “HUD supported the acquisition and preservation of Marble Hall Apartments through our $48 million Section 223(f) refinancing loan and an annual subsidy amount of $4.89 million.”
“I’m grateful that Tuckahoe residents can breathe a sigh of relief knowing that they will be able to continue living in high-quality affordable housing in Tuckahoe; a place many have called home their entire lives and others who are new to our beloved community,” said Tuckahoe Mayor Omayra Andino.
The acquisition and preservation of Marble Hall is supported in part by a $48 million HUD/FHA Section 223(f) refinancing loan provided by Rockport Mortgage Corporation and $17 million in 4% low-income housing tax credit (LIHTC) equity allocated by the New York State Division of Housing and Community Renewal (NYDHCR).
At the local level, associated tax-exempt bond financing in the amount of $38 million was issued by the Westchester County Industrial Development Agency (IDA) and a 40-year PILOT was approved by the Village of Tuckahoe.
“We’re very pleased to work once again with LIHC and Silver Street Development,” said Dan Lyons, President of Rockport Mortgage Corporation. “The experience and expertise these two firms bring to the table is difficult to match and we certainly appreciate the opportunity to work with them on this preservation project.”
In connection with the Section 223(f) loan, the property’s prior Project-Based Section 8 HAP Contract—which was set to expire in September 2039—was replaced with a new 20-year HAP Contract. In addition, the owners worked with HUD to extend the term of the new HAP Contract an additional 19 years, effectively ensuring Marble Hall Apartments remains affordable through 2060.
Located at 100 Columbus Avenue across from Parkway Oval Park on Bronx River, Marble Hall is a ten-story affordable rental building which offers 133 one-, two-, and three-bedroom unit homes for those earning no more than 60 percent area median income (AMI), plus an employee unit for a total of 134 units.
LIHC Investment Group and Silver Street Development Corporation are devoting $5.78 million, or about $43,135 per unit, to renovate the 50-year-old building, address outstanding capital needs and extend its useful life. Special attention is being paid to improve the property’s energy efficiency, the replacement of heat and hot water boilers with energy-efficient units, Energy Star Qualified LED lighting, and common area and in unit finish upgrades.
As part of the rehabilitation, all common areas—including the lobby, laundry room, community room, management office,— will receive upgraded finishes, lighting, fresh paint and new flooring. A tenant computer center will be added to the community room for residents’ use, and the playground and parking lot will be repaired and recoated, along with other site and security system improvements.
The majority of units will receive upgraded plank-style vinyl flooring; kitchens will be outfitted with stainless-steel Energy Star appliances and solid surface countertops, while new vanity cabinets and cultured marble tops will be installed in residents’ bathrooms. Sinks, faucets, showerheads and toilets will be replaced with water-efficient models and new air conditioning units will be supplied by the owners. Several apartments will be reconfigured for full ADA compliance and to better serve those with disabilities, hearing and visual impairments. The number of accessible parking spots will also be increased.
The architect of record for the project is The Architectural Team (TAT), based in Chelsea, Massachusetts.
The Village of Tuckahoe is an established residential community which has grown in desirability as a result of its close proximity to New York City and multiple transportation linkages, with typical commute times to Manhattan ranging from 30 to 60 minutes. Marble Hall’s amenities include on-site security, maintenance and management, a centralized laundry room, outdoor playground, community room and a surface parking lot.
The property has experienced strong demand, with occupancies that have averaged over 99% during the past three years and a waiting list of more than 100 applicants.
Download the press release (pdf)
See: Commercial Observer, “LIHC, Silver Street Spearhead NY Affordable Housing Rehab After $55M Buy”
Affordable Housing Finance, “Developers Secure $71 Million in Financing to Acquire, Preserve Housing in New York”