New York Community Bank (NYCB) has reportedly provided a $105 million mortgage to Harbor Group International and partner York Equities for the purchase a 38-building multifamily portfolio in the Bronx.
The loan-to-value on the acquisition is 75 percent based on the $140 million purchase price.
The 935-unit rent-stabilized apartment portfolio includes properties at 1184 Walton Ave, 769 Bryant Ave, 1192 Walton Ave, 214 E 168th St, and 1235 Morris Ave. The seller was Jerome Associates.
Owners of rent stabilized apartments are subject to predetermined rent increase restrictions, but in some instances — such as making significant renovations after a tenant has vacated — they can bring the units up to market rate.
The deal marks the largest investment sale in the Bronx since Related Companies and a group of New York City pension funds paid $270 million for a 20-building portfolio in December. The deal is also the first Bronx multifamily purchase for Virginia-based Harbor Group, though York Equities was involved in the purchase of a 13-building Bronx multifamily portfolio sold by JPMorgan Chase and Continental Properties for $90 million last year, according reports in The Real Deal.
NYCB and Harbor Group did not respond to requests for comment in time for publications. Westwood Realty Associates and Meridian Capital Group brokered the financing.