In September 2019, CPC made an equity investment to acquire, upgrade and preserve a six-building portfolio in partnership with SMJ Development, a certified Minority-Owned Business Enterprise (MBE) developer. Located in the South Bronx, the portfolio consists of 90 affordable residential units and four commercial spaces currently occupied by restaurants, a beauty salon and a cell phone store.
The mission-driven equity investment from CPC and the borrower’s commitment to preserving affordability will ensure that the building’s residents continue to have a stable, affordable place to call home for decades to come.
Rent was restructured to ensure affordability for 40 years using the New York City Department of Housing Preservation and Development’s “Year 15” Program. Debt financing was provided by the New York City Housing Development Corporation and the New York City Department of Housing Preservation and Development.
CPC partnered with SMJ Development, whose principal Juan Barahona has 19 years of experience in New York City real estate development, as part of its ongoing initiative to support emerging MBE developers.
“Managing tenant in place preservation work at six discrete locations in the Bronx during the onset of a pandemic has certainly had its challenges,” said Mr. Barahona. “However, with perseverance we have worked through construction shutdowns, supply chain disruptions and the unease of residents questioning why we had to do this work now. The tenants have seen real improvements to their buildings and are happy that we’re choosing to invest instead of ignoring the properties. I’m happy that my partners at CPC have never wavered and afforded my team the support necessary to stay the course.”
Formerly homeless individuals and families are given preference to rent 14 of the units. The buildings are located across the Morrisania, Longwood, Mott Haven, Claremont Village and Melrose neighborhoods of the South Bronx.
Ongoing renovations to the portfolio include upgrading fuel systems to high-efficiency condensing boilers and new hot water heaters, all new insulated roofs, building envelope improvements, replacement of all windows, façade repair, security system enhancement and interior/exterior common area improvements.