The Westchester County Industrial Development Agency issued $15.5 million in bonds to finance the construction of affordable rental housing for senior citizens.
The bonds mature on June 1, 2046, and pay interest at 3.625%. They carry an initial mandatory tender date of June 1, 2024. The securities received a rating of Aaa/VMIG 1 from Moody’s Investors Service.
“The Aaa long-term rating of this cash collateralized transaction is based on the strong legal structure and the high credit quality of the investments securing the bonds,” Moody’s analysts wrote.
The bond proceeds will fund a 52-unit housing development in White Plains, New York. The apartments include 13 studios and 39 one-bedroom units, with 40% of the total units required to be rented to tenants making less than 60% of area median income. Renovation for the project, which is known as Armory Plaza, is expected to begin in March of next year and wrap by year’s end, according to the official statement accompanying the sale of the bonds.
The project is being developed by an affiliate of The Related Companies, the real estate firm owned by mogul Stephen M. Ross. Related previously led the development of New York City’s Hudson Yards neighborhood and has bought several affordable housing complexes in recent years. The company’s portfolio now includes more than 50,000 affordable and workforce housing units across the United States.
“Affordable housing laid the foundation of the Related Companies, and its broad portfolio of affordable and mixed-income developments demonstrates the company’s continuing ability to create affordable housing opportunities in a variety of geographically, economically and socially diverse neighborhoods,” the bond documents read.
The bonds are limited obligations of the agency, payable by certain pledged revenue from the Armory Plaza project.
Wells Fargo Bank, NA, served as underwriter on the issuance, purchasing the bonds for par.