Hempstead rental complex has new owner in $107M deal | Long Island Business News

Hudson Valley Property Group, a Manhattan-based real estate investment firm specializing in affordable housing, has closed on its $107 million acquisition of Hempstead apartment property. 

Built in 1972, the six-story, 420-unit building is a federally subsidized property that has seen its share of police activity over the years. Its new owner is planning on investing $23 million in renovations, averaging $55,000 per unit, according to a company statement. 

The planned work includes building modernization, kitchen and bathroom upgrades, and overall quality of life improvements. The renovations will also include elevator upgrades, repairs, parking garage repairs, a security overhaul, including high-resolution and night-vision security, as well as refurbishing of the Hempstead Police Department substation, according to the Town of Hempstead Industrial Development Agency. The IDA approved economic incentives last summer for the acquisition and renovation project. 

The Hempstead complex was formerly owned by 100 Terrace LLC, an affiliate of a partnership headed by Long Island-based D&F Development Group, which purchased it for $27.5 million at the end of 2006, according to public records. 

The acquisition marks HVPG’s first property in Nassau County and expands the firm’s presence on Long Island, where it also operates the 50-unit Plaza at Amityville apartments. 

“We are proud to expand our footprint on Long Island and bring our preservation expertise to Hempstead,” Jason Bordainick, co-founder and managing partner of Hudson Valley Property Group, said in the statement. “100 Terrace represents a critical component of the area’s affordable housing infrastructure, and we’re committed to ensuring these 420 homes remain safe, accessible, and affordable for working families for generations to come. Through thoughtful investment and strategic partnerships with HUD and local stakeholders, we’re preserving not just housing, but stability and opportunity for this community.” 

To ensure long-term affordability at the Hempstead property, HVPG has secured a renewed HUD Project-Based Section 8 Housing Assistance Payment contract covering 99 percent of the building’s units. Income-qualified residents will pay no more than 30 percent of their household income toward rent, with affordability protections locked in for an additional 22 years. The property is further restricted to income-qualified residents earning no more than 50 percent of the area median income, the company said. 

The total project, which is estimated by HVPG at $145 million, is being financed through HVPG’s Hudson Valley Preservation Fund and a Fannie Mae loan provided by KeyBank. HVPG said it worked closely with the U.S. Department of Housing and Urban Development (HUD) and the Hempstead IDA to structure the preservation transaction. 

“We welcome this investment by Hudson Valley Property Group and with our assistance, tenants, the Village of Hempstead, and the Town of Hempstead will benefit from the revitalization of this property and the creation of a safe, attractive, and well-maintained affordable housing community,” Hempstead IDA Executive Director Fred Parola said in the statement. 

Founded in 2010, HVPG has since acquired more than 15,400 affordable apartments across the country, according to its website. 

Michael Tuccillo of Marcus & Millichap represented the buyer, while the seller was self-represented in the Hempstead transaction.