Key Takeaways
- • Genesis Companies has secured $669 million in financing to rehabilitate Rangel Houses, a 984-unit public housing complex in Upper Manhattan, according to Commercial Observer.
- • Berkadia provided $219 million in first-mortgage debt backed by Fannie Mae, featuring a 15-year term with five years of interest-only payments.
- • The New York City Housing Authority (NYCHA) and the New York City Housing Development Corporation (HDC) contributed $214 million in development financing, with $94.5 million in federal and state tax credit equity.
- • Goldman Sachs provided an undisclosed tax credit investment, and Berkadia's Matthew Baptiste and Heather Olson arranged the capital structure.
- • All units will remain affordable, with residents earning at or below 80 percent of area median income, as comprehensive renovations of nearly 1,000 apartments proceed.
Summary
Genesis Companies has closed $669 million in financing to rehabilitate Rangel Houses, a 984-unit public housing complex located at 159-16 Harlem River Drive in Upper Manhattan, according to Commercial Observer. The complex, which opened in 1951 on an 11-acre campus and comprises eight high-rise elevator buildings, is home to more than 1,800 residents.
The capital stack combines several sources. Berkadia provided $219 million in first-mortgage debt backed by Fannie Mae. That loan carries a 15-year term, including five years of interest-only payments, and is expected to blend Rental Assistance Demonstration (RAD) debt with Section 18 programs to fund the rehabilitation. The New York City Housing Authority (NYCHA) and the New York City Housing Development Corporation (HDC) supplied $214 million in development financing, while federal and state tax credit equity contributed an additional $94.5 million. Goldman Sachs provided a tax credit investment, though its amount was not disclosed.
Berkadia's Matthew Baptiste and Heather Olson arranged the financing. Baptiste described the structure in a statement as "a highly coordinated capital structure that combines public subsidies, tax credit equity and agency financing."
Karim Hutson, president and CEO of Genesis Companies, said the firm plans "comprehensive renovations" to update and modernize nearly 1,000 apartment units. The project also covers the broader campus, which includes playgrounds, commercial space, a senior center, a day care center, and a youth center. All units are restricted to residents earning at or below 80 percent of area median income. Hutson said the closing "represents years of work to bring together the resources and partners needed to make a transformative investment in Rangel Houses."
The capital stack combines several sources. Berkadia provided $219 million in first-mortgage debt backed by Fannie Mae. That loan carries a 15-year term, including five years of interest-only payments, and is expected to blend Rental Assistance Demonstration (RAD) debt with Section 18 programs to fund the rehabilitation. The New York City Housing Authority (NYCHA) and the New York City Housing Development Corporation (HDC) supplied $214 million in development financing, while federal and state tax credit equity contributed an additional $94.5 million. Goldman Sachs provided a tax credit investment, though its amount was not disclosed.
Berkadia's Matthew Baptiste and Heather Olson arranged the financing. Baptiste described the structure in a statement as "a highly coordinated capital structure that combines public subsidies, tax credit equity and agency financing."
Karim Hutson, president and CEO of Genesis Companies, said the firm plans "comprehensive renovations" to update and modernize nearly 1,000 apartment units. The project also covers the broader campus, which includes playgrounds, commercial space, a senior center, a day care center, and a youth center. All units are restricted to residents earning at or below 80 percent of area median income. Hutson said the closing "represents years of work to bring together the resources and partners needed to make a transformative investment in Rangel Houses."
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