Hotel renovation set to create housing for seniors
LONDON: The trend to convert existing hotels into housing for seniors is now growing everywhere.
Fairstead is renovating an old hotel into 77 affordable homes for very low-income seniors in the heart of Manhattan.
To help finance the project, mortgage banking company Merchants Capital recently announced that it has closed on a $51 million construction loan and a $28.4 million Freddie Mac 9% low-income housing tax credit (LIHTC) cash unfunded forward commitment.
Additional financing is coming from Boston Financial Investment Management, which is providing LIHTC equity to convert the historic Park 79 Hotel that debuted in 1899 as The Indiana.
In a neighborhood known for luxury condos, the building’s long-term future will be as affordable housing. Under an agreement with the New York City Department of Housing Preservation and Development (HPD), the property will remain affordable for at least 60 years.
Fairstead, a leading affordable housing company, will oversee renovations, reconfiguring the seven-story building into apartments along with multiple community spaces, including an indoor/outdoor community room, a dining room, and meeting rooms.
Additional rehabilitation will be done throughout the building, including new elevator service, the creation of a common dining and recreation room, social services offices, and an outdoor garden area. Upon completion, the property will employ two full-time social service coordinators to work alongside residents in organizing community programming events. The building also will have a full-time attendant serving residents as a lobby concierge.
“The partnership and commitment from Fairstead and the New York City Department of Housing Preservation and Development has brought this meaningful affordable housing redevelopment to life,” said Michael Milazzo, vice president of loan originations at Merchants Capital. “This project will provide New York City’s senior residents with the quality housing and services they deserve. A special thank you is in order to HPD for pushing forward under the most adverse of conditions to get this project closed in a timely manner. We also want to thank Will Blodgett of Fairstead for the company’s dedication to housing for all.”
