A Manhattan-based affordable housing operator recently paid $179 million for a portfolio of 13 aging apartment complexes across Connecticut containing 1,375 units.
In deeds recorded in late April and early May across 10 Connecticut municipalities, Related Affordable purchased the portfolio from Maine-based Subsidized Housing Partners.
The Connecticut Housing Finance Authority provided $145.7 million in mortgage financing for the acquisition. The properties are located in Groton, New Britain, Danbury, Enfield, Waterbury, Middletown, Norwich, East Hartford, Bloomfield and Watertown.
Related Affordable has committed to significant repairs across the portfolio over the next three to four years using proceeds from federal low-income housing tax credits allocated by CHFA, along with tax-exempt bond financing, according to the agency.
Related’s due diligence identified roughly $118 million in capital repair needs across the properties, excluding financing, legal and other soft costs, according to CHFA.
Attempts to reach Related Affordable were not immediately successful.
The firm is a subsidiary of Related Cos., which describes itself as one of the nation’s largest private owners and preservation developers of affordable housing. Founded in 1972, the company’s affordable housing division owns and manages more than 55,000 housing units, according to CHFA.
Prior to the acquisition, Related Affordable owned five CHFA-financed properties in Connecticut and managed two others.
CHFA had previously financed Subsidized Housing Partners’ acquisition of the portfolio, and that loan has since been repaid, according to the agency.
Marcus Smith, CHFA’s senior director of research, marketing and communications, said Related is one of the nation’s best-known affordable housing companies.
“We see them as a trusted partner with a great track record in Connecticut,” Smith said.
Smith said CHFA’s backing of the deal reflects the state’s continued focus on preserving existing affordable housing alongside efforts to create new multifamily housing.
In Norwich, where Related acquired two apartment complexes, Mayor Swarnjit Singh said city officials are developing a new 15-year property tax relief program intended to encourage rehabilitation of older housing properties.
“It’s worth it to the city because at the end of the day we are getting improvements done and these low-income places will be in much better shape,” Singh said.
The increased value of the improved properties will ultimately yield more taxes, Singh said.
“So, it’s a win-win from many aspects,” he said. “I want to make sure we invite other developers to fix much of the housing stock in Norwich.”
The properties sold include:
- 24 Union St., Waterbury – Josephine Towers, a 16-story, 122,356-square-foot apartment building with 125 apartments on 1.25 acres. The 1978-vintage building sold for $10 million in a deed recorded April 30.
- 2 North Main St., Waterbury – Plaza on the Green, an eight-story, 160,398-square-foot apartment tower completed in 1982 on a half-acre. This 157-unit property sold for $13.07 million in a deed recorded April 30.
- 300 Brandegee Ave., Groton – Avery Heights, a 105-unit, 84,724-square-foot apartment building completed on 11.5 acres in 1978. The property sold for $16.7 million on May 5.
- 67 West Main St., New Britain – Burritt House, a six-story, 55,302-square-foot building completed in 1920. The 66-unit building on one-third of an acre sold for $5.25 million in a deed recorded May 1.
- 42 Williams St. Danbury – Danbury Towers, a four-story, 51,742-square-foot apartment building with 80 units on 1.4 acres. The 1977-vintage building sold for $16.5 million in a deed recorded April 30.
- 4 Thistle Lane (105 High St.), Enfield – Fresh Water Pond Apartments, a 1978-vintage property with 76 apartments in nine buildings on 7.7 acres. The property sold for $11.25 million in a deed recorded May 1.
- 1039 Poquonnock Road, Groton – Poquonnock Village, a 1979-vintage property with 98 apartments in three buildings on 9.3 acres. It sold for $16.65 million in a deed recorded May 4.
- 65 Church St., Middletown – South Green Apartments, a four-story, 110,708-square-foot apartment building of 125 units on 3 acres. The 1978-vintage building and associated property sold for $20.5 million in a deed recorded May 1.
- 70 Mechanic St., Norwich – Village Court Apartments, a 13-building, 76-unit development completed in 1978 sold for $5.44 million in a deed recorded May 4.
- 24 North 5th Ave., Norwich – Wequonnock Village, a five-story, 83,453-square-foot building with 98 units completed in 1983. The property sold for $11.14 million in a deed recorded May 6.
- 446 Main St., East Hartford – Willow Arms, a four-story, 83,392-square-foot apartment building with 98 units completed on 5.5 acres in 1980 sold for $10.5 million in a deed recorded May 4.
- 2-24 Dorothy Drive, Bloomfield – Woodside Village, a 1987-vintage development of 11, 16-unit buildings (176 units) and one clubhouse on 16 acres. This property sold for $33 million in a deed recorded May 1.
- 88 Cobb St., Watertown – Woodview Apartments, a 1981-vintage development of 91 apartments in 11 buildings on 89 acres. The property sold for $9 million in a deed recorded April 30.
