MOUNT HOPE PRESERVATION

Kalel Companies assembled and led a development team consisting of Monadnock Development LLC and Notias Development LLC in the acquisition and substantial rehabilitation of Mount Hope Preservation Apartments LLC, a heavily distressed scattered-site multifamily portfolio consisting of 13 buildings totaling 497 units. Renovations were completed with tenants “in place,” except accessibility retrofits, and include roof and window replacements, boiler upgrades, exterior façade pointing, common area and elevator modernizations, 100% rehabilitation of apartment kitchens and bathrooms, and painting of all units. The recapitalization totaled $102 million. MHPA was the pilot project for the new NYC HDC Participation Loan Program. Construction period financing utilized a participation loan structure where HDC originated the loan and sold a 100% participation interest to JPMorgan Chase Bank to finance the acquisition and rehabilitation. Permanent financing includes an HDC permanent loan, HPD subsidy provided through its Year 15 Preservation Program, and developer equity investment.