Strada Assisted with the Closing of Six transactions at Year End 2022
Strada Ventures LLC is proud to have worked on six deals that closed between December 2022 and February 2023.
Strada put together a 100% M/WBE team to complete the rehabilitation of an occupied 48 unit building in Brooklyn serving low-income tenants, 50% of whom are formerly homeless. Last year, Strada secured a predevelopment loan for its non-profit client. In December of 2022, Strada secured a first mortgage with CPC, two secondary loans from HPD, and grant funds from two NYSERDA programs. Additionally, Strada extended the Article XI tax abatement. The rehabilitation will include installation of broadband free of charge to the tenants, energy efficient upgrades, all new kitchens, baths and other in unit improvements, installation of aging in place accommodations, all new windows, a new roof, an upgraded heating system, and solar panels.
In December, Strada assisted in closing a $32 million deal for a different Brooklyn nonprofit which will create a 60-unit new construction building with 59 rental units serving households with an average income below 60 percent of HUD Area Median Income. Sixty percent of total units are reserved for formerly homeless individuals with severe mental illness or a substance use disorder. These 36 studio units will receive project-based NYC 15/15 Rental Assistance through NYC Housing Preservation & Development. All households will have access to on-site social services provided by the nonprofit owner through NYC Human Resource Administration’s Congregate Services RFP (NYC 15/15 services). Construction financing includes a first mortgage from Chase Bank, 9% Low Income Housing Tax Credits from NYS Homes & Community Renewal, and capital subsidy from HPD’s Supportive Housing Loan Program. The project also received a regulatory agreement and a 420-c tax exemption from HPD that preserves affordability for at least 60 years.
Outside of Brooklyn, Strada was the financial consultant on three acquisition/rehabilitation projects in the Buffalo, NY area. The projects all house low-income senior citizens. The projects all have PILOT agreements with the local IDAs, Section 8 HAP contracts and are funded with stand-alone tax credits from HCR and IDA bonds.
At the end of February Strada helped close on construction financing for the rehabilitation of a six-building, 78-unit Low Income Housing Tax Credit development in Central Harlem. Over the course of nine months Strada developed the project underwriting in coordination with the project sponsor, NYC Housing Preservation & Development, the LIHTC investor, and Community Preservation Corporation as lender. Strada provided the project sponsor with technical support through construction loan closing, which included assembling the closing draw schedule and flow of funds for the closing.