Wednesday, April 17, 2019

Real Estate Developer David Kramer Describes Journey From LA Skid Row Affordable Housing Developer To NYC And Roosevelt Island Related Companies Partnership- Riverwalk Building 8 With 341 Unit Affordable Housing Under Construction Now

An interesting interview in The Real Deal with Hudson Companies David Kramer, who in partnership with Related Companies, is the developer of Roosevelt Island's Southtown Riverwalk buildings complex as well as the Main Street Retail Master Leaseholder. Mr. Kramer describes his start in the real estate business building affordable housing in LA's Skid Row to developing in NYC including Roosevelt Island.

According to The Real Deal:
How did you hook up with Related on Riverwalk?

It was an arranged marriage. We didn’t know each other; we hadn’t worked with each other before. And when we started, we weren’t quite sure how it would work. It’s been a 20-year relationship that expanded to us taking over all the retail on Roosevelt Island together.

Did you know it was going to be a 20-year project when you started?

No. We almost sent in a resignation letter. I mean it didn’t seem as sexy to be designated to work with Roosevelt Island [in the 1990s]. I drafted a letter saying, “No thanks, love and kisses, Hudson.” But I was chatting with some colleagues, and they said that seems like too good of an opportunity to turn up. So I put the letter away. But getting there … we didn’t start construction until December 2001...
Click here for entire The Real Deal interview with Mr Kramer.

Hudson Related is currently in construction on Riverwalk 8,

a 341 unit fully affordable housing building. As reported last November:
... Under the proposed Building 8 Ground Lease, a 21-story building comprised of approximately 240,000 square feet of floor area and 341 rental units, will be constructed. Building 8 will be financed under the Department of Housing Preservation and Development of the City of New York and the New York City Housing Development Corporation’s M2 Mixed Middle Income Program. RIOC seeks to preserve affordable housing, consistent with its mission and statutory purpose.

Under the Building 8 Ground Lease (i) 3% of the 341 units will be reserved as Homeless Units, (ii) 3% of the units will be reserved for very low-income families with household incomes of 40% of AMI, (iii) 14% of the units will be reserved for families with household incomes of 50% of AMI, (iv) 10% of the units will be reserved for families with household incomes of 80% of AMI, (v) 20% of the units will be reserved for families with household incomes of 100% of AMI, and (vi) 50% of the units will be reserved for families with household incomes of 130% of AMI. This breakdown provides an even greater degree of affordability than was set forth in the Fifth Amendment.

To the extent permitted under the financing programs, current Roosevelt Island residents will be given preference in any affordable housing lottery with respect to Building 8....
and here's video

of Mr. Kramer with his Related colleagues discussing the affordable housing plan with RIOC Real Estate Advisory Committee during November 7, 2018 meeting.

During the November 7 meeting, Mr. Kramer said he would love to give Roosevelt Island residents a preference  for the affordable units but the NYC Housing Preservation Department, which is providing project financing said the preference is for entire Community Board 8 and not limited to Roosevelt Island residents.

More on the Roosevelt Island Riverwalk 8 Affordable Housing Building at this prior post.