Shore Hill Apartments

Shore Hill, a 558-unit senior Section 8 property in the Bay Ridge neighborhood of Brooklyn was purchased in November 2018. The Fund acquired the property in a joint-venture with a national non-profit and co-investment from Fund investors.

Shore Hill is a New York State Mitchell-Lama property, regulated by the New York State Division of Housing and Community Renewal (DHCR) and further subject to a New York State Housing Finance Agency (HFA) Regulatory Agreement. At acquisition, the Fund elected to keep the property in the Mitchell-Lama program and paid off its existing HFA bonds with a new 10-year Freddie Mac loan.

The Fund successfully negotiated a significant reduction in monitoring fees and its non-profit partnership allows the Fund to benefit from annual property tax savings. The Fund plans to implement a long-term hold strategy to benefit from health cash flow and property value appreciation over time.

The Fund will complete approximately $3M of capital improvements focused on environmental efficiency and enhancing resident services.

The Fund was not the highest bidder in this brokered sale, but won the deal based on the Firm’s reputation as a conscientious steward of affordable housing properties and its plan to continue critical resident services for seniors including daily meals, adult day care, exercise, medical screening and transportation.