A venture of Invesco Real Estate and L+L Development Partners has agreed to purchase and preserve five former Mitchell-Lama developments in Manhattan from Urban American and Brookfield Asset Management.
The regulatory agreements, covering all 2,800 units and enacted in partnership with the New York City Department of Housing Preservation & Development (HPD) and New York State Homes & Community Renewal (HCR), will secure long-term tenant protections, allowing L+M and Invesco to return more than 1,800 units in Manhattan to long-term regulation.
The deal was funded through the L+M Workforce Housing Fund, which completed fundraising in 2019 with $500 million of equity commitments, and was established to make social impact investments in affordable and workforce housing assets primarily in the New York City metropolitan area.
“L+M’s approach has always centered around creating affordable housing and keeping residents in their homes, and our Workforce Housing Fund represents a continuation of that work,” said L+M Development Partners managing director Eben Ellertson. “This deal sends a strong message about how government and committed private sector partners can make a real impact in addressing the need for high-quality workforce housing in New York City. Thanks to our partners at the city, state and Invesco for seeing it through.”
The former Mitchell-Lama developments were built between 1975 and 1980 and include River Crossing, the Heritage, the Miles and the Parker in East and Central Harlem, and Roosevelt Landings on Roosevelt Island.
The 2.2 million-square-foot portfolio exited the Mitchell Lama program in 2005. To return the units to affordability, L+M and Invesco intend to work with HPD to enact a regulatory agreement to protect residents living in the East and Central Harlem properties and work with HCR to do the same for Roosevelt Landing, which is governed under state authority.
The preservation transaction will commit L+M and Invesco — and any future owner — to long-term regulation. At the same time, it will restrict any future new development on the sites to 100 percent affordable housing.
L+M and Invesco will immediately begin a $50 million series of capital improvements across the portfolio, including the continuation of energy savings measures begun by Urban American, implementation of structural upgrades as well as the addition of amenities to common areas, which will be available to all residents.