NEW YORK CITY — Merchants Capital has provided $25.2 million in financing for the recapitalization and redevelopment of Westbeth Artists Housing, a 384-unit, historic, mixed-use affordable housing development in New York City. A state-sponsored program, Homes and Community Renewal Multifamily Preservation (HCR), also contributed $63 million. Chase is also a financing partner, but details about the company’s contribution were not released.
The rehab will replace roofing, elevators, windows and radiators; restore the building’s façade; renovate 32 apartments; and install energy-efficient updates, including green roofs.
Westbeth Artists Housing is owned by the nonprofit Westbeth Housing Development Fund Corp., administered by the Westbeth Board of Directors. The community opened as affordable housing for artists in 1970. The buildings were originally constructed in 1868 for Western Electric.
“Partnering with Merchants Capital, New York State HCR and Chase is allowing Westbeth the opportunity to undertake the property’s most comprehensive renovation since the 1970 conversion to apartments,” said Peter Madden, Westbeth’s executive director, in a prepared statement.
In addition to residences, Westbeth also has 64 commercial spaces, including 46 affordable artist workspaces for residents, rehearsal studios and exhibition spaces. Westbeth Artists Housing is home to such institutions as the Martha Graham Dance Company, The Kitchen and The New School Graduate Drama Program.
Affordability will now be enhanced via a new regulatory agreement with HCR that will stabilize rents for most of the units. A total of 85 permanent Section 8 subsidized units will be available.