Leading financial services provider Merchants Capital announced $25.2 million in financing as part of the recapitalization and rehabilitation of Westbeth Artists Affordable Housing, a 384-unit historic, mixed-use affordable artist housing development in New York City.
Merchants Capital secured financing via a Freddie Mac Capital Markets Execution (CME) straight-to-permanent loan.
The project is also supported by $63 million from New York State Homes and Community Renewal‘s (HCR) Multifamily Preservation Program.
Located in the West Village neighborhood of Lower Manhattan, Westbeth Artists Affordable Housing spans an entire city block. In addition to 383 affordable housing units and one superintendent’s unit, Westbeth has 64 commercial spaces, including 46 affordable artist workspaces for residents, rehearsal studios, arts programming and exhibition spaces. Westbeth Artists Housing is home to major cultural institutions, including the Martha Graham Dance Company, The Kitchen and The New School Graduate Drama Program. Originally built for Western Electric in 1868, the site became the headquarters for Bell Telephone Laboratories and the site of innovations in early sound film, video transmission, lasers and the binary computer. It was transformed into artist housing in 1970 and is a national model for converting industrial buildings into residential spaces.
“Westbeth Artists Housing carries an extraordinary legacy. For decades, Westbeth has provided affordable housing for its artist residents and served as a vibrant hub for the local community,” said Ben Levine, Senior Vice President of Originations at Merchants Capital. “Merchants Capital is honored to support the Westbeth mission, contribute financing towards improvements of this historic building and preserve long term affordable housing within the West Village neighborhood.”
Affordability will now be enhanced via a new regulatory agreement with HCR that will stabilize rents and restrict 383 units. A total of 85 permanent Section 8 subsidized units will be available.
“Partnering with Merchants Capital, New York State HCR and Chase is allowing Westbeth the opportunity to undertake the property’s most comprehensive renovation since the 1970 conversion to apartments,” said Peter Madden, Westbeth’s Executive Director. “Westbeth is an invaluable resource to the artists who call it home, and this investment will allow generations of artists and their families to call Westbeth home far into the future. As a nonprofit, we are fortunate to work with these lenders who are supportive of our mission and have gone to great lengths to ensure the success of this complex project.”
“This project is transforming the historic Westbeth Artists Housing into safe, modern and energy-efficient apartments that nearly 400 households will be able to afford,” said New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas. “We are proud that our $63 million investment and regulatory agreement will help improve livability and affordability for this development. We are grateful to Governor Hochul for her commitment to preserving model affordable housing developments like these and we thank our partners for their dedication.”
The $86.1 million rehabilitation will include capital improvements to replace roofing, elevators, windows and radiators; restoration of the historic façade; full renovation of 32 apartments and energy efficiency upgrades, including the installation of green roofs.
