Apollo Real Estate Advisors and Taconic Investment Partners have acquired a portfolio of condominium units at Fairfield Towers, a mid-rise housing complex in the East New York section of Brooklyn, for $90 million (€70 million). The partnership plans to spend an additional $40 million for capital improvements.
The residential units acquired include 983 one-, two- and three-bedroom apartments at the complex, which consists of 19 buildings along Flatlands Avenue. The Lightstone Group was the seller.
“We do not envision this as a gentrification project, but rather as the revitalization of a community for the people of East New York and nearby communities,” said Taconic principal Charles Bendit in a statement
Apollo and Taconic, a New York-based office and multi-family developer, have enlisted The Housing Partnership Development Corp to provide homeownership training to residents and help those interested in purchasing their apartments to secure state subsidies.
Apollo points to the significant new development taking place in East New York as one of the building’s draws. Fairfield Towers, which was originally built as a rental development in the 1960s, sits near the “epicenter of the neighborhood’s revitalization” according to James Simmons, a partner with Apollo. The towers are situated near a new 640,000-square-foot retail development and across the street from a site where 800 new homes will stand.
Apollo says the Fairfield Towers acquisition complements its strategy of investing in affordable housing in New York City. Earlier this year, Apollo acquired 1,865 residential units in the Soundview section of the Bronx with plans to convert the apartments to affordable co-ops. The private equity real estate firm also recently purchased Delano Village, an 1,800-unit rental complex in Harlem.