Camber Property Group has obtained a 60-unit, project-based Section 8 apartment complex in Central Harlem for $30 million.
Camber, a mixed-use and workforce housing developer, settled on a deal to buy the four-building Johanna Apartments complex at 104-110 West 114th Street from Renaissance Realty Group.
Camber principal and co-founder Rick Gropper stated that building new units is not the only way they can preserve affordable housing in New York City and the property was partially financed with a $20.5 million loan from Walker & Dunlop, with a longer-term plan of switching it to a HUD loan.
The five-story apartment complex has been operated under a contract with the U.S. Department of Housing and Urban Development to offer homes for low-income families. But it was never regulated by the city’s Department of Housing Preservation, Gropper said, leaving it vulnerable to conversion into market-rate apartments if a new owner chose to do so.
Camber is in the means of signing a 40-year regulatory deal with the city to maintain the affordability of the complex in exchange for a tax abatement, he said, noting that an agreement is expected to be approved shortly.