Leading financial services provider Merchants Capital announced $60.5 million in total financing for Tredway’s acquisition and preservation of Ocean Park Apartments, a 602-unit affordable housing community in Far Rockaway, New York.
Merchants Capital secured a $60.5 million balance sheet acquisition loan provided by Merchants Bank to stabilize and extend affordability for the 602 units, preventing substantial imminent rent increases and providing the necessary capital to complete critical repairs.
Ocean Park Apartments consists of two 26-story towers with one, two and three-bedroom apartments and four commercial spaces. All of its units are rent stabilized according to Tredway’s new regulatory agreement with the Department of Housing Preservation & Development (NYC HPD), with affordability of 423 units being extended at 60% area median income (AMI) and 179 units at 80% AMI.
“The structural integrity of Ocean Park Apartments and affordability of more than 600 multifamily units and are being supported and well maintained due to the collaboration and commitment of Tredway and partners involved in this deal,” said Michael Milazzo, Senior Vice President of Originations at Merchants Capital. “We are proud to contribute to this community-enhancing effort.”
The rehabilitation is designed to repair deterioration due to its beachfront exposure. The scope of work planned includes critical structural repairs, the replacement of the parking deck, extensive waterproofing, window weatherization and improvements related to Local Law 11.
Tredway is a real estate development firm that acquires, develops, revitalizes and preserves affordable housing. The company currently has more than 5,600 actionable units in its pipeline and more than 1,000 in active development.
“Tredway is pleased to complete this preservation in partnership with Merchants Capital and to significantly strengthen Ocean Park’s affordability, ensuring it remains a beacon of opportunity for the entire Far Rockaway community,” said Will Blodgett, Founder & CEO of Tredway. “We are deeply grateful for the support of our public and private partners. Your teamwork and collaboration are key to our success.”
Ocean Park Apartment residents will have access to a swimming pool, onsite parking, multiple playgrounds, a spacious community room and more than 9,000 square feet of retail space that houses a physical therapy center, pharmacy and quick service retail.
Residents will also benefit from expanded monthly food distributions in partnership with City Harvest and swim and water safety programming provided by the nonprofit Rising Tides Effect.
