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Taconic, Clarion Seal $130M Loan for Bronx Affordable Apartment Complex

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The year may be drawing to a close but that doesn’t mean the deals have stopped.

Taconic Partners and Clarion Partners just sealed a $130 million loan for Eastchester Heights, the joint venture’s massive apartment complex spanning five city blocks in the Bronx, Commercial Observer can first report. 

Wells Fargo provided the loan, while Eastdil Secured negotiated the transaction. 

Situated on nearly 15 acres, the project is among the largest residential communities in the Bronx. Its 114 buildings were constructed in 1934 and comprise 1,416 rent-stabilized units. 

The new round of financing retires $115 million in previous debt — provided by Capital One in 2018 —and also funds ongoing renovations at the project.

“We’re proud to continue investing in this community,” said David Milch, vice president of Taconic Partners. “The closing of this loan is an important step towards preserving affordability. We are committed to providing an accessible, top-quality residential destination in the Bronx.” 

Taconic and Clarion acquired the complex — at 3480 Seymour Avenue — for $136 million in 2007 from Urban American and City Investment Fund.

The purchase may have marked the joint venture’s first steps into the affordable housing space, but the project’s transformation over the years has made it a template for private investment into New York City’s workforce housing stock. 

Over the past 14 years, Taconic and Clarion have completed significant capital improvements to enhance the quality of life for Eastchester Heights’ residents, undertaking renovations and upgrades to the property’s landscaping, building entrances, security, energy efficiency and sustainability. 

Case in point, the refinance follows a 200,000-square-foot solar installation that was completed in July. The climate-friendly rooftop addition will produce more than 1.1 million kilowatt hours of clean electricity, and help New York City reach its goal of reducing greenhouse gas emissions by 80 percent by 2050.

Today, Eastchester Heights features plenty of outdoor space, and offers its residents an extensive amenities package that includes basketball courts and a playground area. The complex is a community hub, offering resources such as life coaching, job training and a computer lab. 

The financing is the second big deal to close within a few weeks for Taconic, who’s experiencing a busy end of the year. In late November, the firm — together with National Real Estate Advisorsclosed a $204 million construction loan for 312 West 43rd Street, the joint venture’s luxury residential development in Hell’s Kitchen. 

Happy Holidays, indeed. 

Officials at Wells Fargo and Eastdil weren’t immediately available for comment. 

Cathy Cunningham can be reached at: ccunningham@commercialobserver.com. 

Original Article: commercialobserver.com

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Finance

Biden: Federal Reserve Should ‘Recalibrate’ Policy As Prices Rise

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WASHINGTON – U.S. President Joe Biden on Wednesday said it was appropriate for the Federal Reserve to recalibrate the support it provides to the U.S. economy, in light of fast-rising prices and the strength of recovery.

‘Given the strength of our economy and recent price increases, it’s appropriate, as … Fed Chairman [Jerome] Powell has indicated, to recalibrate the support that is now necessary,’ Biden told a

Source: bignewsnetwork.com

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Finance

Sinema, Manchin Prove There’s Still a Long Way to Go

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The Black community owes a debt of gratitude to United States Senators Kyrsten Sinema and Joe Manchin. The dynamic duo have managed, by supporting the filibuster and crippling two major voting rights bills, to remind any of us who had any doubts or historic contextual misunderstandings that Martin Luther King Jr. Day is a day …

Original Source: azcapitoltimes.com

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Finance

Fields Holdings Adds Another Retail Center in SoCal

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It’s been a big day for retail real estate in Orange County, Calif.

Commercial Observer can first report that Fields Holdings has agreed to pay $28.8 million for Palm Center, a 92,950-square-foot, grocery-anchored shopping center in the city of Orange. This deal follows the $39.5 million sale of Gateway Center in Orange County, which was also announced today. Additionally, it was announced last week that L.A.-based Fields Holdings acquired the Brentwood Shopping Center in Los Angeles for $30 million.

Colliers announced the Palm Center deal and represented the seller, Corning Development. It’s the first change in ownership since it was developed in 1971.

“The seller was Australia-based, and this was their last owned asset in the U.S.,” said Colliers’ El Warner, who brokered the deal with Charley Simpson. “After our team generated 16 offers, the property was purchased by a Los Angeles-based investor who was in a 1031 exchange from the sale of an apartment property. The buyer plans on renovating the shopping center and holding the property long-term.”

Palm Center is located on 8.1 acres at 934–970 North Tustin Street. Albertsons has been the anchor tenant for more than 30 years. Other tenants include The UPS Store, O’Reilly Auto Parts, UFC Gym, Aqua-Tots Swim Schools and America’s Best Contacts & Eyeglasses. Colliers said the sale represents continued demand for quality retail properties with upside in booming U.S. markets. 

“Eleven billion dollars in retail traded hands across the U.S. in November of 2021, the highest level on record in the last decade,” Warner told CO in a statement. “Demand is robust as both 1031 exchanges increased and institutional capital returned into the retail investment space.” 

He added that the pandemic proved retail’s resiliency with increased buyer demand that significantly outpaced supply, creating cap rate compression and additional competition.

“Accelerated interest and limited supply have created an incredibly bullish market for retail moving into 2022,” he said. “Under the current economic conditions, property owners willing to market an asset will see a tremendous return. Legacy properties remain extremely attractive to buyers looking to capitalize on long-term yield.”

Gregory Cornfield can be reached at gcornfield@commercialobserver.com

Source Here: commercialobserver.com

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