Hudson Valley Property Group Closes $52.5M Real Estate Acquisition of 133-Unit Affordable Housing Portfolio in Boston

Hudson Valley Property Group has completed a $52.5 million real estate acquisition of two affordable housing properties in Boston, Massachusetts, expanding the firm's New England footprint with 133 family units.

The transaction includes Boston Bay at 205 Magnolia Street and Hope Bay at 5 Norwell Street, two adjacent properties comprising 20 buildings in the Dorchester neighborhood. The properties were originally constructed between 1890 and 1920 across two scattered sites. This marks Hudson Valley Property Group's first acquisition in Massachusetts.

Commercial Real Estate Financing Structure

The total project costs of approximately $52.5 million were funded with a Fannie Mae loan provided by KeyBank. The commercial real estate financing package supports both the acquisition and a comprehensive $6.4 million renovation program, averaging approximately $48,000 per unit.

SVN Affordable | Levental Realty brokered the transaction. Hudson Valley Property Group secured new HUD Project-Based Section 8 Housing Assistance Payment contracts covering 100% of the units, which are leased to income-qualified residents. These contracts limit household rental payments to 30% of annual income.

Property Improvements

The comprehensive renovation scope includes complete kitchen and bathroom upgrades with water-saving fixtures, Energy Star appliances, and modern finishes. Additional improvements encompass common area enhancements, upgraded security features throughout both properties, and LED lighting installation at building exteriors and common areas to enhance resident safety and energy efficiency.

"We are proud to bring HVPG's preservation platform to Boston and Massachusetts," said Jason Bordainick, Co-Founder and Managing Partner of Hudson Valley Property Group. "Boston Bay and Hope Bay represent an opportunity to preserve critical affordable housing in one of the nation's most supply-constrained markets. Our investment will ensure that 133 families can continue to call Dorchester home while benefiting from modernized living spaces and enhanced amenities. We look forward to partnering with the City of Boston and HUD to safeguard affordability and elevate quality of life for residents."

Affordability Extension

As a result of this real estate acquisition and rehabilitation, affordability will be extended for an additional 27 years at Boston Bay and 31 years at Hope Bay.

Hudson Valley Property Group will implement several community-focused initiatives at both properties. Through a partnership with Pinata, residents will have access to renters' insurance and credit reporting services that enable them to build credit by reporting on-time rent payments to credit bureaus. The firm will introduce its signature Community Enhancement Program, which includes the installation of security cameras and access control systems throughout both properties.

UHM Properties will serve as the onsite property manager for the portfolio.

Sources

Hudson Valley Property Group - https://hudsonvalleypropertygroup.com/hvpg-acquires-two-affordable-housing-properties-in-boston-massachusetts/