Nonprofit Partners St. Nicks Alliance and Joint Ownership Entity ("JOE") Buy For-Profit Owned 248 Apartment Affordable Housing Portfolio
The Joint Ownership Entity (JOE NYC) and St. Nicks Alliance Corporation announced the acquisition of two affordable real estate portfolios comprised of 248 apartments from MHR Management, Inc. The acquisition was made possible by support from the Local Initiatives Support Corporation (LISC), the New York City Department of Housing Preservation and Development (HPD), and the New York Equity Fund, a joint venture of LISC and Enterprise Community Partners.
St. Nicks Alliance is a 41 year old community development corporation (CDC) serving the Greenpoint community. JOE NYC is a newly formed nonprofit collaborative entity composed of ten nonprofit, neighborhood based CDCs.
The purchase of the 43 building "Watkins" and "Jefferson" Clusters located in Central Brooklyn represents a rare example of a real estate portfolio in New York City owned by a for profit developer being acquired by a nonprofit organization.
The properties were originally developed under HPD's Neighborhood Entrepreneurs Program (NEP) and will soon reach the end of their 15 year federal low income housing tax credit compliance period. The sale ensures that the projects will be maintained as affordable housing over the long term.
The $7,513,000 acquisition was financed through a $5,307,677 loan from LISC, and a $965,382 equity investment from St. Nick's Alliance as well as a $1,240,000 equity investment from JOE NYC.
Consent for the transfer of the ownership was secured from HPD as well as from the New York Equity Fund, a joint venture of LISC and Enterprise Community Partners.
Peter Madden, JOE NYC's Executive Director said, "JOE NYC will be a long-term steward of affordable housing properties. The acquisition of these properties, which will be managed by St. Nicks Alliance, ensures that current tenants will be protected and that the buildings will continue to be high quality, affordable places to live for decades to come."
Joseph Robles, Chairperson of St. Nicks Alliance said: "St. Nicks Alliance is pleased to acquire the 248 unit Jefferson and Watkins affordable portfolio from a great entrepreneur who efficiently managed housing while remaining committed to high affordability standards.”
HPD Commissioner Maria Torres-Springer said, “The preservation of existing affordable housing is an important part of our mission to make New York City more affordable. Thanks to the commitment of JOE NYC and St. Nicks Alliance, over 240 households can rest assured that their monthly payments will remain within their means. HPD is pleased to join in this exciting venture with JOE NYC and look forward to many collaborations to come.”
Sam Marks, Executive Director of New York City's LISC program stated, “LISC NYC is proud to provide acquisition financing for JOE NYC’s first acquisition of a privately owned affordable housing portfolio, and to provide additional support to the transaction through LISC’s New York Housing Stabilization Fund. Now more than ever, New York City needs to expand its portfolio of housing assets that will be stewarded for long-term affordability, and this joint venture between St. Nicks Alliance and the JOE will do just that.”