NEW YORK—The Community Development Trust (CDT) and Proto Property Services (Proto) to acquire and rehabilitate Ocean Towers, a 360-unit property in the Coney Island section of Brooklyn.
CDT is a private real estate investment trust (REIT) that provides capital to the affordable housing sector. This is the REIT’s first acquisition in New York City.
Proto, an affordable housing developer, will serve as the managing member, general contractor and property manager for the property and will be responsible for completing a scope of work that include system replacements.
“The acquisition of Ocean Towers will allow CDT and Proto to preserve and improve the homes of 360 families in Coney Island,” said Joseph Reilly, president, CEO, CDT. “The fact that Hurricane Sandy impacted so many areas of New York where affordable housing was already scarce makes this acquisition all the more important. Our rehabilitation of Ocean Towers will make the building more energy-efficient and provide for resiliency against future storms. But more importantly, we are also ensuring that Ocean Towers remains affordable for the families who already call the property home.”
The purchase and rehab of the property is being funded with $10 million of equity from CDT and Proto and a $35 million acquisition loan originated by Enterprise Community Loan Fund Inc., a subsidiary of Enterprise Community Partners, Inc. through the New York City Acquisition Fund (NYAF).
Renovations, which are expected to span 18 months, include updating its heating and electrical systems, full elevator replacement, new building entrance, parking lot resurfacing, new entry doors and upgrades to common areas. Current residents will remain in-place with minimal disturbance throughout the renovations.
Located on West 24th Street between Mermaid and Surf avenues, Ocean Towers was originally built under the Mitchell-Lama Program in 1973.