Genesis Companies has closed a 669 million dollar financing package for the repair and modernisation of Rangel Houses in New York City. Located in Upper Manhattan, the subsidised residential complex comprises 984 homes and provides housing for more than 1,800 tenants.
The core of the debt structure is a 219 million dollar senior loan backed by Fannie Mae, arranged and provided by financial services firm Berkadia. In addition, the New York City Housing Authority (NYCHA) and the New York City Housing Development Corporation (HDC) are contributing 214 million dollars in development funding. A further 94.5 million dollars comes from equity via state and federal tax credits, flanked by an undisclosed tax credit investment from US investment bank Goldman Sachs.
Differentiated capital structure for affordable housing
The Fannie Mae financing structured by Matthew Baptiste and Heather Olson at Berkadia carries a term of 15 years, with the first five years structured as an interest-only period. The transaction combines funds from the Rental Assistance Demonstration (RAD) programme with subsidy stipulations under Section 18. All units in the complex remain reserved for households with an income of no more than 80 per cent of the area median income.
Baptiste described the agreement as a highly coordinated financing framework bringing together public subsidies, tax credit equity and agency funding sources. The property at 159-16 Harlem River Drive opened in 1951 and covers a campus of around 11 acres consisting of eight high-rise buildings with lifts.
Comprehensive modernisation of neighbourhood infrastructure
Karim Hutson, President and Chief Executive Officer of Genesis Companies, emphasised that the closing was the result of years of preparation to bring together the necessary resources and partners for a sustainable transformation. Far-reaching upgrades are planned, intended to enhance not only the housing stock but also the associated community facilities.
- —Full modernisation of the 984 affordable flats
- —Upgrading of outdoor spaces and playgrounds across the campus
- —Repair of the adjoining commercial units
- —Refurbishment of the senior, youth and childcare centres
