The purchase will eliminate the risk of 581 housing units from conversion to market rate rentals
K & R Preservation, a New York City-based affordable housing development firm owned and operated by its principals Francine Kellman and Brian Raddock, announced today the acquisition of Spring Creek Gardens Apartments, a multifamily apartment complex located at 902 Drew Street, in the Lindenwood section of Brooklyn.
The 581-unit property includes 193 studio units, 98 one-bedroom units, and 290 three-bedroom units, including one superintendent unit. The purchase price was $79 million.
The property is subject to affordability restrictions on 85% of its units which will limit vacancy risk and supply the community with quality affordable housing. The project currently benefits, and will continue to benefit, from a 420-C tax abatement.
Ms. Kellman, K & R Co-principal, said, “The purchase and preservation of Spring Creek Gardens through the use of a credit enhanced mortgage will help to eliminate the risk of 581 affordable housing units in Brooklyn from conversion to market rate units.
“As the economy struggles to recover from the Covid-19 pandemic, the preservation of affordable housing in New York City is a paramount goal. And, given the fact that the City’s funding for housing development is likely to be curtailed, this project will preserve affordable housing in the area and thus provide a long-term benefit to the community.”
Spring Creek Gardens Apartments is in close proximity to public transportation, parks, and hospitals.
Brooklyn and the New York City Metropolitan area has experienced growth in retail and construction in recent years. Spring Creek Gardens is located adjacent to Conduit Boulevard, Linden Boulevard, the Belt Parkway and the Cross Bay Boulevard, all major thoroughfares in the region of southeast Brooklyn that provide connection and ease of access to the entire region and beyond. Just north of the site is the Grant Avenue New York City subway station’s A train line providing direct access to Manhattan.
Within walking distance are restaurants, stores, grocery shopping, banks, pharmacies, and parks lining Linden Boulevard. Less than half a mile from the site is the Gateway Center, a major regional shopping and entertainment center providing access to major retailers. The site’s accessibility within New York City provides a boon of opportunities and amenities to the residents.
Spring Creek Gardens Apartments financing consisted of a first mortgage credit enhanced by Freddie Mac as well as investment from PNC Equity Group.
Mr. Raddock, K & R Co-principal, said, “Together with our non-profit partner, The NYC Housing Partnership, we intend to continue the 420-C Tax Abatement Program in order to provide not only on-going affordable housing necessary for low income families in the region, but housing with amenities and services that go well beyond the basics.”
About K & R Preservation, LLC
K & R Preservation has acquired and rehabilitated 10 properties, in New York City, Spring Valley, New York and East Orange, New Jersey totaling 3,395 low-income units. Properties in the portfolio include the East River Apartments, a 179-unit multifamily apartment complex in East Harlem, Albert Goodman Plaza, a 252-unit rental complex and four-building property located in The Bronx, the Surrey Carlton Apartments, a 176-unit rental complex located in Spring Valley, New York, Trinity Apartments
, a 75-unit multifamily complex located at 2105 Daly Avenue in the Bronx, Sinclair Houses, an 81-unit rental complex located at 502 and 528 West 151st Street in the Hamilton Heights section of Manhattan, North Shore Plaza, a 536-unit multifamily Project in Staten Island located at 35 Holland Avenue, a 876-unit NYCHA Portfolio scattered throughout the Bronx, Brooklyn and Manhattan, a 236-unit senior living complex called Oakwood Towers in Essex County, NJ located at 400 Oakwood Avenue, The Leggett Avenue Portfolio, a 324-unit multifamily portfolio of five projects located across the Bronx and Brooklyn in New York City, the Capital District Apartments, a 584-unit senior and handicapped portfolio of four buildings located in Watervliet, the City of Albany, Schenectady and Cohoes all within the Capital District of the State of New York and the Landmark Apartments, a 252-unit multifamily and senior housing portfolio in Ulster and Greene Counties in New York State. Most recently, K&R Preservation has closed on the acquisition and rehabilitation of the Oakwood Gardens apartments, a 100-unit multifamily property in Mount Vernon, NY.
