Hudson Valley Property Group (HVPG), a leading, national affordable housing preservation company, announced the acquisition of a five-property portfolio spanning 1140 units across the D.C. metropolitan area and North Carolina. The properties include Rock Creek Terrace, Village Square Apartments, Central Gardens II, Millwood Townhomes, and Pleasant House.
The deal, with total project costs of $208 million, transfers ownership of four properties in Prince George’s County and Montgomery County, Maryland, and one property in Gastonia, North Carolina, to HVPG. Rock Creek Terrace is pictured above and the other properties are detailed below.
The acquisition marks the next step of HVPG’s growth in the Mid-Atlantic and Southeast regions. While the firm has previously undertaken rehabilitation projects in Maryland, the acquisition also represents HVPG’s first project in North Carolina.
“The acquisition of these properties marks an exciting milestone for our firm, as we have increased our current portfolio of affordable housing to 65 communities with more than 10,650 units throughout the Northeast, Midwest and Mid-Atlantic and Southeast regions of the United States,” said Jason Bordainick, co-founder and managing partner of Hudson Valley Property Group. “The continued growth of our holdings since our founding is a testament to our continued commitment to preserving quality affordable housing that benefits both our residents and the communities they call home. We thank our partners for their ongoing collaboration and look forward to upgrading these properties in line with our proven investment strategy.”
As part of its acquisition strategy, HVPG will improve and preserve each of the 1140 units of affordable housing included in the portfolio, while furthering its goal of uplifting and revitalizing communities through HVPG’s investments in high-quality, sustainable neighborhood assets. HVPG is planning approximately $13M of initial renovations across the 5 properties that will encompass a variety of holistic improvements, including site infrastructure upgrades and a number of in-unit bathroom, kitchen and apartment safety improvements as needed to ensure adherence to HVPG’s community standards.
To ensure long-term affordability for its residents, HVPG secured new or assumed existing governing regulatory agreements for each of the properties with agencies inclusive of U.S Housing Urban & Development (HUD), Prince George’s County and Fannie Mae extending affordability by an average of 29.5 years across the portfolio.
The acquisition and property rehabilitations are financed from Hudson Valley Property Group’s latest fund, as well as debt financing from Fannie Mae arranged through JLL.
