Baisley Pond Park Residence will deliver 318 permanently affordable apartments for low-income and formerly homeless New Yorkers at the former JFK Hilton Hotel
Turning an empty hotel into housing, New York City Department of Housing Preservation and Development (HPD), New York City Housing Development Corporation (HDC), Slate Property Group, and RiseBoro Community Partnership are creating permanently affordable housing in a first-of-its-kind project converting the former JFK Hilton Hotel into apartments for low-income and formerly homeless NewYorkers.
Slate and RiseBoro acquired the hotel in South Jamaica, Queens, for $64 million, setting in motion the first former hotel to be converted into permanently affordable housing through New York’s Housing Our Neighbors with Dignity Act (HONDA) program. Construction on the new Baisley Pond Park Residences is set to begin next month, converting the hotel into 318 apartments for low-income and formerly homeless New Yorkers. By selecting a hotel with compatible layouts and making only selective changes to internal walls, Slate will complete construction in just 21 months, compared to 36 months for conventional ground-up construction.
“Digging our city out of this severe housing shortage will require every tool in our toolbox, and our administration helped win an important fight to add this hotel conversions,” said New York City Mayor Eric Adams. “Advancing this plan to turn a vacant hotel into more than 300 new, affordable homes is a sign that we can think outside of the box and take advantage of the opportunities in front of us. I want to thank our partners in Albany for making it possible to turn empty hotels into affordable homes and our development partners who will deliver on the promise of this idea for hundreds of New Yorkers.”
“This significant investment will help to bring our state one step closer to building the affordable, supportive, and sustainable homes that New Yorkers deserve,” said Governor Kathy Hochul. “My administration is continuing to back transformative projects that unlock our state’s housing potential – including the first-ever hotel conversion project through the Housing Our Neighbors with Dignity Act – and we will keep using every tool at our disposal to build the housing we need to make New York more vibrant and more affordable.”
Originally built in 1987, the 350-room JFK Hilton hotel is located a half-mile from John F. Kennedy International Airport. After its conversion to Baisley Pond Park Residences, all apartments will have full kitchens and ADA-compliant bathrooms. Building amenities will include multiple community rooms, a computer lounge, fitness room, and on-site laundry. Landscape architecture firm OSD has designed a stunning indoor/outdoor garden space for residents. Rents will range from $784 for a studio to $1,493 for a 2-bedroom.
As part of its conversion, Slate is replacing all major building and mechanical systems, including new all-electric heating and cooling systems that will dramatically reduce its emissions. The building will have new rooftop solar panels installed and efficient Energy Star appliances. The project was designed by Aufgang Architects and will be certified by Enterprise Green Communities.
Following construction, RiseBoro Community Partnership will retain long-term, non-profit ownership and management, which was made possible through the Department of Social Services’ (DSS) new and innovative Affordable Housing Services Program. This project marks the first time this model has been utilized to fund the creation of non-profit owned permanent affordable housing. RiseBoro will also provide onsite support and wrap-around services for residents as they transition from homelessness to permanent affordable housing. The robust staffing plan includes case managers and onsite programming. The former hotel’s commercial kitchen is also being converted into a facility for Meals on Wheels that will support RiseBoro’s clients.
Total development costs, including acquiring the hotel site, are projected at $167 million, of which $48 million is being provided through the HONDA program. The remaining capital is being provided through a $50 million senior loan from the NYC Housing Development Corporation, which is being credit enhanced and serviced by Chase, and subordinate debt from NYC HDC and the NYC Department of Housing Preservation and Development. Importantly, the project is funded with an allocation of 501c3 bonds from HDC and will not draw from scarce Low-Income Housing Tax Credits (LIHTC) or volume cap, preserving them for other vital affordable housing projects. MSquared, a women-owned real estate impact platform, provided a key $4.4M pre-development loan, which was repaid at closing. The Baisley Pond Park Residence’s on-site supports, wraparound services, and operations will be funded through a long-term contract with DSS as part of the agency’s Affordable Housing Services Program.
The New York City Department of Housing Preservation and Development (HPD)promotes quality and affordability in the City’s housing, and diversity and strength in the City’s neighborhoods – because every New Yorker deserves a safe, affordable place to live in a neighborhood they love. We maintain building and resident safety and health, create opportunities for New Yorkers through housing affordability, and engage New Yorkers to build and sustain neighborhood strength and diversity. HPD is entrusted with fulfilling these objectives through the goals and strategies of Housing Our Neighbors: A Blueprint for Housing and Homelessness, Mayor Adams’ comprehensive housing framework. To learn more about what we do, visit nyc.gov/hpd and connect with us on Facebook, Twitter, and Instagram @NYCHousing.
The New York City Housing Development Corporation (HDC) seeks to increase the supply of multi-family affordable housing, stimulate economic growth and revitalize New York City’s neighborhoods. We are charged with helping to finance the creation and preservation of affordable housing for New Yorkers and also serve as the key financing partner in the rehabilitation of our city’s public housing stock under the NYCHA Permanent Affordability Commitment Together (PACT) initiative. As the nation’s largest municipal Housing Finance Agency, HDC consistently ranks among the nation’s top issuers of mortgage revenue bonds for affordable multi-family housing. For additional information, visit www.nychdc.com and follow us on LinkedIn.
Slate Property Group is an owner, operator, developer and lender, primarily focused on multifamily in the New York metropolitan area. From adaptive reuse and repositioning of existing assets to ground-up development and lending, Slate’s dedicated team of more than 125 employees leverage extensive experience in the multifamily asset class. Over the last decade, Slate has invested in excess of $6.5 billion across equity and debt, with a current portfolio of 50+ investments.
RiseBoro Community Partnership is a community development nonprofit that has been operating in all five boroughs of New York City for five decades. RiseBoro uses a unique and holistic model to revitalize communities, with programs in housing, senior care, education, health and empowerment. Using affordable housing development as a foundation, RiseBoro’s approach helps unleash the potential of New York’s most vulnerable populations.
MSquared is a women-owned real estate development and impact investing platform that delivers real solutions by partnering with government, developers and investors to build mixed use, mixed-income projects that promote inclusive economic growth and deliver strong risk adjusted returns. To learn more about our work, please visit buildmsquared.com.
