CITY OFFICIALS CELEBRATE THE COMPLETION OF BEACON TOWERS AND BEACON MEWS IN RIBBON CUTTING CEREMONY|
Developments in Harlem Reflect Success of Affordable Housing
New York, NY – July 7, 2010 –
In a ribbon cutting ceremony today in Harlem, city officials gathered together
to celebrate the completion of Beacon Towers and Beacon Mews, two residential
developments that reflect the need and success of affordable housing
developments in New York City. Developed under Mayor Michael R. Bloomberg’s New
Housing Marketplace Plan (NHMP), Beacon Towers and Beacon Mews offer both rental
and homeownership opportunities to New Yorkers with a range of incomes.
At the ribbon cutting, Frank Anelante, CEO of Lemle & Wolff,
Inc., John J. Frezza, President, Strategic Development & Construction
Group and Marc Jahr, President of NYC Housing Development Corporation
(HDC) were joined by Beth Berns, CFO of Housing Partnership Development
Corp, Alison Badgett, Executive Director of The New York State
Association for Affordable Housing, and Marian Zucker, Executive Vice
President of State of New York Mortgage Agency.
Under the NHMP, launched by the Bloomberg Administration in 2003, New
York City has already invested $4.5 billion and HDC has issued $5 billion in
bonds to finance more than 100,000 homes on the way to the Plan’s target of
165,000 units. Of the more than 100,000 units financed to date, 33 percent were
in Manhattan, the vast majority of which were in East and Central Harlem; 32
percent were in the Bronx, 23 percent were in Brooklyn, 11 percent were in
Queens and a little more than one percent was on Staten Island. Of the total, 68
percent were rental units and 32 percent were homeownership units. A total of
9,084 affordable homes have been financed in Manhattan’s community board 10
where the two new buildings are located.
“The affordable housing financed by HDC and developed by our partners
is designed to meet the needs of New Yorkers with a wide range of incomes,” said
Marc Jahr, President of NYC Housing Development Corporation. “Built at a
total cost of $68.5 million, Beacon Towers and Beacon Mews offer a mix of rental
and homeownership opportunities for a broad cross section of New Yorkers.
These newly constructed buildings will provide quality living and community
space that will foster economic diversity and strengthen the surrounding
Located at 29 West 138th Street, Beacon Towers (www.beaconaffordable.com) is an
eight-story newly constructed cooperative development in Central Harlem. Average
prices are $260,000 for a one bedroom home and $350,000 for a two bedroom home.
Next door at 34 West 139th Street, Beacon Mews (www.beaconmews.com) is a 125-unit rental
building that caters to the low and middle income residents.
Rents for low-income residents for one bedroom homes start at $782 and
two bedrooms start at $943 per month. Construction of both
projects is complete and occupancy is immediate. Sales and
marketing are handled by Halstead Property Development Marketing.
Beacon Towers and Beacon Mews provide much needed affordable housing to
the community and, in addition, contain 19,000-square-feet of space that has
been set aside for community facility use as well as underground parking for the
residents and community.
The site was formerly vacant land owned by New York City which, through
a “Request for Proposals” process was awarded to a joint-venture development
team, Strategic Construction & Development Corp. and Lemle & Wolff,
Inc., and the sites were developed utilizing programs of the New York City
Housing Development Corporation (HDC) and the City’s Department of Housing
Preservation and Development (HPD).
“HPD, along with sister agency HDC, has financed the development of a
variety of affordable housing under Mayor Bloomberg’s New Housing Marketplace
Plan. Beacon Mews and Beacon Towers are great examples of mixed-income projects
that offer both homeownership opportunities alongside lower income rental
apartments,” said HPD Deputy Commissioner for Development Holly Leicht. “HPD
designated the development team of Strategic Development & Construction
Group and Lemle & Wolff in Late 2003, at the very beginning of the NHMP. I
am proud of the role we have played in rebuilding this neighborhood: both by
putting our resources to good use in creating new affordable homes for New
Yorkers and preserving our precious affordable housing stock.”
A joint venture between Strategic Development & Construction Group
and Lemle & Wolff, Inc., Beacon Towers and Beacon Mews have been developed
by two companies that have been at the forefront of creating mixed use
affordable housing developments in New York for more than 25 years.
The sponsors developed this project to put home ownership within reach to
middle class and working New Yorkers.
“We are proud to offer this project for low and middle income families
presenting them with the option to rent or buy at an affordable price,” said
John Frezza, President of Strategic Development & Construction Group. “In
the conversion of this vacant lot into two buildings, we are able to offer
affordable homes to our NYPD, FDNY, teachers, nurses, and all others essential
to a great community.”
Beacon Towers recently announced that they will offer a “tax credit” to
buyers. The Beacon Towers Tax Credit will give buyers $8,000
cash upon closing, and will function even better than the Federal program did
since every purchaser will qualify and there are no restrictions.
The cash can be used to cover the costs of general living expenses, can
be applied towards the building’s monthly mortgage or maintenance charges, or
for the buyer’s personal savings. The credit will be available on new contracts
signed between now and July 31, 2010.
Beacon Towers is an affordable coop project under the HDC Affordable
Cooperative Program and HPD Cornerstone Program and consists of 73-units of
which only four units are market-rate. The project was
financed with a $24,387,463 construction loan financed thru Citibank, with
permanent financing thru HDC. HDC provided two separate mortgages of permanent
debt. The first mortgage was $2,485,000 and the second
mortgage is $4,485,000 which combined into one permanent mortgage in the
aggregate amount of $6,970,000.
Beacon Mews is an affordable rental project under the HDC New HOP
Program and HPD Cornerstone Program and consists of 70% NHOP units (87 units)
and 30% LIHTC units (38 units). The project was financed
through NYC Housing Development Corporation Multi-Family Mortgage Revenue Bonds
(2006 Series A) in the amount of $23.5 million tax-exempt bond
proceeds. In addition, HDC issued a subordinate second
mortgage to Beacon Mews LLC at an interest rate of one percent in the loan
amount of $5,625,000 or $45,000 per dwelling unit ($45,000 x 125 units). First
Sterling also participates in the financing of the property as a tax credit
"The completion of Beacon Mews and Beacon Towers is a testament to
Strategic Development's ability to build and operate quality affordable
housing," said William Yates, a vice president with Citi Community Capital,
Citi's community development lending and investing arm. "Affordable rental
housing and homeownership opportunities are a critical need in New York City.
With Citi's commitment to responsible lending, we are proud to be a part of the
completion of these residential communities."
For more information on Beacon Towers, please visit www.beaconaffordable.com or contact
Megan Raphael at firstname.lastname@example.org or (212) 867-8778
About Strategic Development and
Development & Construction Group (SDCG) has been actively
engaged in the acquisition, financing, development and marketing of residential
and commercial projects since 1985. SDCG has built over three thousand
residential units and earned numerous awards for its achievements from
organizations such as the Associated Builders and Owners of Greater New York,
Inc., the Brooklyn Chamber of Commerce, NYSAFAH and the New York State Senate.
For more information, please visit: http://www.strategic-construction.com
About Lemle & Wolff, Inc.:
Lemle & Wolff, Inc. is a real estate management
and development firm that was established in 1938 and is today one of the
foremost providers of affordable housing in upper Manhattan and the
Bronx. A full service organization, the firm is committed to
the preservation and upgrading of the housing stock in the areas it
services. L&W currently manages more than 300
buildings and, since 1974, L&W has completed the construction and/or
rehabilitation of over one hundred buildings. L&W is a
past recipient of an award for national excellence for community development
partnerships. For more information, please visit http://www.lemlewolff.com/.
About Mayor Michael R. Bloomberg’s New Housing Marketplace
New York City’s affordable housing program to build or preserve 165,000
units of housing — enough to house half a million New Yorkers — is the most
ambitious and productive in the nation—creating housing as well as jobs for New
Yorkers. In April, 2010 the City reached the critical benchmark of 100,000 units
financed—representing an investment of $4.5 billion to date by the City, not
including roughly $5 billion in bonds issued by HDC.
Led by HPD Commissioner Rafael E. Cestero, the Plan has been recast to
maintain production momentum while confronting head-on the economic challenges
facing the City, the State, the housing industry, the financial sector and
individual New Yorkers and their families. In order to fulfill the NHMP goal of
165,000 units, HPD and the NYC Housing Development Corporation (HDC) are
responding to market realities and focusing on three primary goals:
strengthening neighborhoods, expanding the supply of affordable and sustainable
housing and stabilizing families by keeping them in their homes. To read more
about the NHMP, please visit http://www.nyc.gov/html/hpd/html/about/plan.html.
About the NYC Department of Housing Preservation and Development
HPD is the nation’s largest municipal housing preservation and
development agency. Its mission is to promote quality housing and viable
neighborhoods for New Yorkers through education, outreach, loan and development
programs and enforcement of housing quality standards. It is responsible for
implementing Mayor Bloomberg’s New Housing Marketplace Plan to finance the
construction or preservation or 165,000 units of affordable housing by 2014.
Since the plan’s inception, more than 100,000 affordable homes have been created
or preserved. For more information, visit www.nyc.gov/hpd.
About the New York City Housing Development Corporation
The New York City Housing Development Corporation (HDC) provides a
variety of financing programs for the creation and preservation of multi-family
affordable housing throughout the five boroughs of New York City. HDC’s programs
are designed to meet the wide range of affordable housing needs of the City's
economically diverse population. In partnership with the NYC Department of
Housing Preservation and Development, HDC works to implement Mayor Michael R.
Bloomberg’s New Housing Marketplace Plan to create of preserve 165,000
affordable housing units by 2014. Since the plan launched in 2004, HDC financed
nearly 44,200 homes for low- , moderate- and middle-income New Yorkers. The New
York City Housing Development Corporation is rated AA by S&P and Aa2 by