BRP, Goldman Team on $45M Bedford-Stuyvesant Project
Posted July 13, 2010
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NEW YORK - The NYC Housing Development Corp. (HDC), NYC Housing Preservation and Development (HPD), Goldman Sachs Group Inc. and BRP Development have completed a $45 million deal to develop 105 units of affordable housing and 9,700 square feet of retail space in Brooklyn's Bedford-Stuyvesant.
Goldman Sachs is the sole private investor in the Bradford, slated for completion in summer 2012 and designed for LEED Silver certification. BRP Development Corp. is the developer of the mixed-income project, which is part of Mayor Michael R. Bloomberg's New Housing Marketplace Plan (NHMP), an $8.4 billion initiative to finance 165,000 affordable housing units for 500,000 New Yorkers by 2014. To date, the program has created or preserved nearly 108,600 affordable units in New York's five boroughs.
Goldman Sachs worked closely with HDC, the largest housing bond issuer in the country, and HPD, the largest municipal developer of affordable housing in the country, to develop an innovative structure, which for the first time allowed HDC financing to be used in conjunction with New Markets Tax Credits (NMTC).
Goldman Sachs' Urban Investment Group has made a number of investments in mixed-income community development projects in New York City neighborhoods and elsewhere in the U.S. to help transform distressed or underserved communities.
The Bradford's apartments will be reserved for low- and middle-income families. Of the 105 rental units, 21 will be reserved for families earning no more than 30% of the Area Median Income (AMI), currently $23,760 for a family of four. Thirty-two units will have rents set at 125% AMI (currently $99,000 for a family of four) and 51 set at 130% AMI ($102,960 for a family of four) and these units may be rented to households earning up to 160% AMI ($126,720 for a family of four).
HDC issued $20.7 million in recycled tax exempt bonds for construction financing and provided $6.8 million in subsidy from its corporate reserves. HPD provided $4.38 million in City Capital funds, $1.9 in HOME funds and $1 million in HTF funds. Goldman Sachs, in addition to fulfilling the role as equity backer for the bond issuance, has also provided $6.5 million in NMTC equity.
The not-for-profit and development partners are the Bedford-Stuyvesant Restoration Corp., the nation's oldest community development corporation, and BRP Development Corp., a minority-owned development firm of multifamily housing in New York City and Philadelphia.
BRP Development has completed, or is currently developing, approximately $150 million in nine mixed-use properties in New York City and Philadelphia. The Bradford is its second project with HDC.
The developer's BRP Management Group LLC will provide marketing and property management. The division now manages 145 rental and condominium units and about 30,000 square feet of commercial space in Brooklyn, Harlem and Philadelphia. Waveland Community Development and Carver Federal Savings Bank provided the New Markets Tax Credits.
The Bradford is part of a broader strategic partnership between Goldman Sachs and BRP to invest in mixed-income community development projects in New York City neighborhoods. BRP's pipeline includes developments in Central Brooklyn, the South Bronx and Upper Manhattan.
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