Camber Property Group Closes $845M Deal to Take Over Brooklyn’s Linden Plaza

By Isabelle Durso | COMMERCIAL OBSERVER

January 8, 2024

Camber Property Group has closed on a massive deal to take over a large multifamily complex in East New York, Brooklyn, that tenants have said was in a state of disrepair, Commercial Observer has learned.

Camber has purchased the 11-building, 1,527-unit Linden Plaza apartment complex from Linden Plaza Preservation, an entity managed by RY Management, for nearly $1 billion, the developer said. The deal closed just before the new year.

“This was a historic transaction and one of the largest multifamily transactions,” Rick Gropper, founding principal at Camber, told CO. “This transaction allows all of the stakeholders in a public-private partnership to make real improvements to benefit the residents’ quality of life.”

The project has a total development cost of approximately $845 million, funded through financing from J.P. Morgan Chase, Merchants Capital, the New York City Housing Development Corporation (HDC), the New York City Department of Housing Preservation and Development (HPD) and Freddie Mac loans, the firm said.

No brokers were involved in the deal. Spokespeople for HPD, HDC, J.P. Morgan, Merchants Capital and RY Management did not immediately respond to requests for comment.

Located at 675 Lincoln Avenue southwest of Robert E. Venable Park, Linden Plaza was built in 1971 over a nine-block railyard using development rights from the Metropolitan Transportation Authority, according to Gropper.

But residents of the apartment complex reported dangerous living conditions in recent years, saying their apartments had mold, caving-in ceilings and leaky pipes. Despite repeated complaints, residents told News 12 that repairs were never made.

Camber is now planning to complete $400 million worth of improvements at the building, including new kitchens, bathrooms, common areas and HVAC upgrades.

Housing Opportunities Unlimited will assist residents looking for temporary relocation as their apartments are renovated, Camber said.

Camber and its partners also plan to bring “critical social services” to the property to support tenants, including mental health counseling, job training and financial literacy assistance, according to the developer.

“This [project] will allow us to provide critical services to the residents, as well as restore amenity spaces that they haven’t been able to use in many years and create a place they’re proud to call home,” Gropper said.

Read the article here.

1601 DeKalb Avenue in Bushwick Tops Off

TRADED

December 20, 2024

Camber Property Group has teamed up with RiseBoro Community Partnership to develop 1601 DeKalb Avenue, a $75 million affordable housing project in Bushwick. The project will feature 127 new housing units and aims to address the growing demand for affordable housing in the area.

Topping Out and Project Timeline

The topping out ceremony for the building took place on December 10, 2024. The development had to go through an extensive rezoning process, which was completed in 2018. This allowed the previously manufacturing-zoned lot to be designated for residential use. The rezoning effort involved collaboration with local officials, community stakeholders, and Brooklyn Community Board #4. The development team closed on the project in December 2023 and is targeting a Certificate of Occupancy (TCO) by January 2026.

Housing Mix and Affordability

1601 DeKalb Avenue will offer a variety of apartment types to accommodate different family sizes: 33 studios, 52 one-bedroom units, 24 two-bedroom units, and 18 three-bedroom units. The project includes 45 units funded by the NYC 15/15 program, which provides rental assistance and social services for young families. Rent affordability will range from 40% to 100% of the Area Median Income (AMI), with 50% of the units designated as permanently affordable.

On-Site Services

The development will provide several on-site amenities, including property management and social services offices, 24/7 security, and laundry facilities. The marketing of affordable units will begin through the Housing Connect portal in mid-2025, with a 50% Community Board preference, and set-asides for mobility-impaired and vision/hearing-impaired individuals.

Sustainability Features

1601 DeKalb Avenue will be one of the most environmentally-friendly buildings in New York City. It will meet the Enterprise Green Communities Criteria, focusing on energy efficiency, reduced carbon emissions, and community health. The building will feature high-efficiency electric heating and cooling systems, ample bike storage, community rooms, and an open landscaped courtyard.

Location and Community Access

The building is conveniently located near public transportation, with easy access to the DeKalb Avenue stop on the L subway line and several bus routes. It is also within walking distance of Maria Hernandez Park and Grover Cleveland Playground, offering residents additional recreational options.

Camber’s Continued Growth

With this project, Camber Property Group continues to expand its affordable housing footprint in Brooklyn, where it currently owns nearly 1,000 affordable units in neighborhoods such as Prospect Park South and East New York.

Read the article here.

A Q&A with Camber Property Group’s Rick Gropper

By The Editors | COMMERCIAL OBSERVER’S OWNERS MAGAZINE

December 10, 2024

Rick Gropper
Principal and co-founder at Camber Property Group

Are you going to buy in `25? If so, what asset class?
Camber remains bullish on the acquisition of existing affordable housing as well as land to build affordable, supportive and transitional housing. There is such an acute need for this type of housing as market rent climbs and the effects of inflation are felt on residents’ wallets. Camber has several deals currently in contract that will close in `25 in the permanent housing and transitional spaces.

Is there a single “good” sign you see in a distressed property that makes you want to buy it?
Desire to make a change. We see a lot of distressed opportunities and have a track record of successfully turning around some highly physically and financially distressed assets. This requires a lot of hands-on blocking and tackling with significant financial risk to the incoming developer. We won’t get involved in something unless we have good partners — including on the sell side of the transaction — who are all working toward the same goal. Basis helps, also.

What real estate or tax policy would you like to see from a Trump administration?
From an income tax perspective, we would like to see bonus depreciation reinstated, as it will phase down to 0 percent in 2027. This deduction is beneficial to us as direct owners of real estate, but even more so in our efforts to bring investors into the space. Low-Income Housing Tax Credit investors and conventional equity investors alike can use passive loss deductions to boost their returns on an after-tax basis and fund more capital into deals as a result. Permanent bonus depreciation is certainly something Trump can get behind — it’s from the Tax Cuts and Jobs Act of 2017.

Another tax-driven item would be exempting affordable housing from the volume cap for private activity bonds. This is a super nerdy thing, but would double affordable housing production in New York City over the next decade and greatly increase it nationwide.

If you could stack the new administration with people you know and do business with, who would you choose?
I would make Walter McNeil HUD secretary. He’s the longtime president of the Edenwald Houses tenants association and one of the best people I know. Walter lives in the 2,000-unit former New York City Housing Authority complex that we recapitalized, and are in the process renovating. He has an amazing perspective and temperament. Walter spent two and a half years fighting for our country in the Vietnam War. He then came back and landed a job at the U.S. Postal Service, where he worked until retirement.

Which market (outside of NYC) do you like best? Which market (including NYC) are you most fearful of?
As we grow nationally, it becomes more and more clear how difficult it is to do business here as a developer and owner. The level of regulation in New York City has become almost untenable between new local laws passed every day and collection issues. I don’t want to sound super-negative because New York City is our home base. There are things that we need to collectively do more efficiently to encourage investment here.

Outside of the city, Camber is working in a bunch of states now, and our experience in Ohio has been very encouraging.

What’s going to be your biggest expense in 2025?
Camber’s biggest expense is also its greatest asset: our team. For our operating assets, the biggest expense across the board is insurance. So many insurance carriers have dropped the New York City affordable housing market that the cost of insurance has doubled or even tripled over the past five years.

What are your predictions for the mayor’s City of Yes?
City of Yes is going to pass. The principles are sound and the pros at the Department of City Planning and City Hall are going to help get this across the finish line. I’m sure there will be modifications, but, even so, it will be a huge win for the city. Projections show it will increase housing production by 30 percent over a 15-year period.

Lightning Round

Social media of choice?
I waste a lot of time on Instagram. Follow my dog @batesthesilverfox.

AI: Helpful in CRE or a fad?
Helpful.

Last movie you saw in a theater?
“Straight Outta Compton.” That was 10 years ago.

You’re going on a six-month expedition into the Amazon. What’s your last meal before you get on the plane?
Pizza from Roberta’s.

Tesla or BMW?
Neither.

Will interest rates be below or above 4 percent on July 1, 2025?
Above, sadly.

If you could partner with one person in the business on a property, who would it be?
Ron Moelis. Don’t tell him. His head is big enough.

What are you tired of talking about?
Interest rates.