Berkadia has closed a $219 million Fannie Mae loan to support a major rehabilitation of the Rangel Houses affordable housing complex in Manhattan. The financing backs the modernization of a 984-unit community originally constructed in 1951 in the Washington Heights neighborhood. The 15-year permanent loan is a central component of a broader $669 million capital stack assembled to advance the project.
The capital structure supporting the rehabilitation effort includes approximately $214 million in subsidy from New York City, alongside $94.5 million in federal and state historic tax credit equity. Together with the Fannie Mae loan, these sources are intended to fund comprehensive renovations while maintaining long-term affordability for existing and future residents of the property.
Rangel Houses is located at 159-16 Harlem River Drive and spans an 11-acre public housing campus. The property consists of eight high-rise residential buildings and currently serves more than 1,800 residents. The existing community is being upgraded rather than replaced, with work focused on modernizing residential units and improving building systems to extend the asset’s useful life.
Berkadia Affordable Housing’s Matthew Baptiste and Heather Olson arranged the financing on behalf of Genesis Companies, which is leading the rehabilitation effort. The transaction was structured to align multiple public and private funding sources, including municipal subsidy and historic tax credit equity, with the long-term agency loan.
The financing was completed in partnership with the New York City Housing Authority, the New York City Housing Development Corporation, and Goldman Sachs. The deal is part of the New York City Housing Authority’s Permanent Affordability Commitment Together program, which is designed to preserve public housing properties through private investment and long-term affordability commitments.
In a statement, Managing Director Heather Olson of Berkadia Affordable Housing noted that current volatility in interest rate markets required a tailored financing approach. She said Berkadia, working with Fannie Mae, structured the transaction to ensure that the level of permanent loan proceeds remained intact despite market conditions.
Renovations planned under this capital program are expected to modernize Rangel Houses while preserving affordability restrictions, supported by the combination of agency debt, public subsidies, and historic tax credit equity. Image courtesy of Berkadia.
