Ocean Park Co-ops Purchased By Related Companies
Related Apartment Preservation (RAP), a subsidiary of The Related Companies, LP, one of the nation’s leading full-service real estate firms, has announced that it has purchased Ocean Park Apartments from the Ocean Park Company.
Ocean Park is an existing affordable housing development in Far Rockaway originally constructed in 1972 under New York City’s Mitchell Lama Program. Affordability was provided through rent regulation, real estate tax abatements and low interest rate loans. The Program’s life was limited to twenty years, however, which has recently caused concern for Mitchell Lama residents as some owners have withdrawn their properties from the Program, thus reducing New York City’s affordable housing stock.
A spokesman for the company says that RAP’s purchase of Ocean Park is continued evidence of the commitment of The Related Companies to affordable housing in New York City. Related has been able to achieve this goal in this Far Rockaway location through use of the following financing methodologies: It has been approved for the use of $39 million of tax-exempt bonds provided by the New York State Housing Finance Agency. The bonds were credit enhanced by Fannie Mae for 30 years; and were underwritten by Bank of America. The mortgage loan servicer is American Property Financing.
In exchange for receiving the tax-exempt financing, RAP has agreed to extend the property’s affordability for an additional 40 years. Related Capital Company, a subsidiary of Charter Mac (AMEX:CHC), one of the nation’s premier financial services companies for the real estate industry, will invest almost $11 million in equity. The new financing and equity infusion will enable RAP to invest extensively in property renovations including new roofs, new windows, a complete renovation of the outdoor concrete plaza, building façade repairs and interior and apartment renovations to improve the quality of life for the residents.
Ocean Park is a 602-unit multi-family rental housing development consisting of two 26-story towers and two single story commercial buildings located at 125 Beach 17th Street, 120 Beach 19th Street, and 1721-1731 Seagirt Boulevard in Far Rockaway, Queens. The Project was originally built in 1972 and consists of 300 one-bedroom units, 250 two-bedroom units and 50 three-bedroom units, and two additional two-bedroom units set aside for the superintendents. The project also contains on-site parking with 329 covered garage spaces and 95 outdoor parking spaces, a swimming pool, playground area, community room and laundry facilities in each building.
The Project includes two one-story commercial buildings located on Seagirt Boulevard. The buildings contain 5 fully occupied retail units which include a drug store, bank, convenience store, sit-down restaurant and medical office.