NEW YORK, March 1, 2017 /PRNewswire-USNewswire/ -- Pryor Cashman represented Kline Enterprises, a second-generation, family-owned organization, in the sale of its extensive 1,009-unit affordable housing portfolio for more than $181M to a joint venture between Hudson Valley Property Group, Red Stone Companies and Wheelock Street Capital. SVN Affordable | Levental Realty was the exclusive listing broker tasked with valuing, marketing and negotiating the transaction on behalf of Kline.
Kline's assets, a combination of senior and family affordable properties, were spread throughout Northern New Jersey – in Paterson, Orange, East Orange, Metuchen, Old Bridge, Hazlet and East Windsor – and were managed by First National Properties. The sale of the portfolio will ensure long-term affordability for over 2,500 residents and preservation of the assets through sustainable upgrades and planned renovation over the next several years.
Under the skillful counsel of Senior Partner Ronald B. Kremnitzer, co-chair of Pryor Cashman's Real Estate Group, Partner Perry Amsellem and Associate Ari Tran, the transaction closed on February 16, 2017, after nearly one year of negotiations.
"This was a complex transaction that required the finesse of an experienced legal team," said Kremnitzer. "We are thrilled to help this sophisticated deal, which included multiple properties and an in depth understanding of the intricacies of regulatory hurdles, across the finish line after a diligent, yearlong effort."
The seven properties are subsidized by long-term, project-based Section 8 contracts and encumbered by various regulatory restrictions. The purchase price of over $181M is the result of a sophisticated financing structure specific to portfolio transactions.
Financing was provided by Walker and Dunlop and Fannie Mae.
Goodwin Procter LLP, Nixon Peabody LLP and Berman Indictor LLP served as purchaser's counsel for the transaction.
More About Pryor Cashman's Real Estate Group
Pryor Cashman is an award-winning midsize firm that sees things differently. Our nationally-recognized Real Estate Group provides end-to-end counsel to clients buying, selling, developing, leasing and investing in properties in New York City and across the U.S. With decades of experience representing every type of stakeholder in the real estate market, we handle a vast and diverse range of transactions – and know how to creatively structure and efficiently close virtually any deal.
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SOURCE Pryor Cashman LLP