The affordable and mixed-income real estate developer Tredway announced it has acquired the 602-unit family-designated Ocean Park Apartments, located at 125 Beach 17th St. in Far Rockaway.
As part of this $88 million acquisition, Tredway entered into an agreement with the New York City Department of Housing Preservation and Development (HPD) to bring all the units at Ocean Park Apartments into rent stabilization. The agreement also calls for the affordability to be extended for 423 of the 602 units at 60% of the area median income and the other 179 units at 80% of the area median income.
“We are pleased to take on the stewardship of Ocean Park and to execute a preservation that significantly strengthens the property’s affordability while providing critical capital repairs, energy-efficiency improvements and expanded social services,” Tredway Founder and CEO Will Blodgett said. “Instituting rent stabilization at Ocean Park protects current and future residents from rapidly rising rental prices and will maintain the property as a beacon of opportunity for the entire Far Rockaway community.”
In addition to making sure all the units are affordable and residents are protected from rent increases, Tredway also partnered with City Harvest to provide expanded food and nutrition services at Ocean Park Apartments. Rising Tide Effect will also be offering swim and water safety lessons at the complex, courtesy of a partnership between the nonprofit and Ocean Park Apartments.
There are plans to perform substantial rehabilitative work on Ocean Park, primarily to correct decades of the beachfront complex’s deterioration as a result of excessive exposure to salt spray and the elements. Such work will include structural repairs, replacing the parking deck, extensive waterproofing, weatherizing the windows, replacing the roof and work across the site related to Local Law 11, which would ensure the exterior walls are inspected and made structurally sound.
“Preserving affordable housing in Far Rockaway is essential to protecting our communities from displacement and ensuring local families can continue to build their futures here,” New York City Council Majority Whip Selvena Brooks-Powers said. “I’m proud to support this important investment at Ocean Park, which will keep over 600 units affordable, improve quality of life for residents and enhance long-term climate resiliency. I thank Tredway, HPD and all our partners for their commitment to keeping Far Rockaway a place where working families can thrive.”
The acquisition of this property also reflects Tredway’s dedication to bringing new climate norms to New Yok City. The real estate developer hopes to improve the energy efficiency at Ocean Park Apartments through the installation of low-flow fixtures, LED lights, Energy Star appliances and other electricity and water conservation measures. Such measures could better ensure stable housing for residents there, as they would increase the likelihood of property remaining in good condition for decades to come.
“We are grateful to the U.S. Department of Housing and Urban Development (HUD), New York State Housing Finance Agency (HFA), HPD, Assembly Member Stacey Pheffer Amato, Council Member Selvena Brooks-Powers and to the Ocean Park Tenants’ Association and all of its residents for their partnership and commitment to the preservation of Ocean Park,” Blodgett said.
Ocean Park Apartments was originally developed in 1973 under New York City’s Mitchell-Lama program, which provides affordable rental and cooperative housing to families of moderate to middle incomes. The property consists of two towers, both 26 stories tall and featuring units ranging in size from one-bedroom to three-bedroom.
Other than its close proximity to the ocean, other residential amenities at Ocean Park Apartments include a large swimming pool, on-site parking, playgrounds and outdoor spaces, a community room and more than 9,000 square feet of retail space. Some of the notable features of the retail space are a physical therapy center, a pharmacy, a grocer and quick service retail.
A loan from Merchants Bank is financing Tredway’s purchase of Ocean Park Apartments. This loan was coordinated by Michael Milazzo and Mathew Wambua. Victor Sozio and Shimon Shkury of the real estate consultant Ariel Property Advisors brokered the sale.
