Within the next 30 to 45 days Clarkstown officials expect to review purchase proposals for the Middlewood Apartment senior complex in Nanuet. The town owns the low-income senior citizen development on Middletown Road but its mortgage is coming due and town officials are evaluating different options including refinancing and selling the multi building complex.
“The HUD mortgage on the property is coming due at the end of this year,” said Town Attorney Amy Mele.
She said the town was advised that it should look at refinancing or selling the property. The HUD financed complex provides Section 8 low-income housing.
The town board voted unanimously to hire Marcus & Millichap Real Estate Investment Services of NY in November to assist the town. The board’s resolution stated the agreement with Marcus & Millichap was for the firm to provide real estate services for an open listing of the property and that it would receive a four percent commission if an “acceptable purchaser is procured.”
Mele said the town has been told there is a lot of interest in the 107-unit complex but no proposals have been presented. She said the board would meet in closed session to hear the offers because they would be considered contract negotiations.
“The town board has made no decisions as of yet,” she said on Thursday.
Mele could not provide specific details on the complex’s’ history or how it became town property but said the carpenters’ union originally owned it in the 1970s and early 1980s before the town took over.
Mele said the town would only sell the complex to “an entity that would preserve the property as a senior housing development for Clarkstown residents.”
She said the buyer would have to guarantee that no one would be displaced and the subsidized rents would remain the same. Mele said it was likely that an investor would improve or renovate the property but otherwise a sale should have little impact on tenants.
“From the residents’ perspective it should be relatively seamless,” she said.
Mele said the town is required to have an appraisal done of the property but would not disclose an approximate value or range except to say a sale would be in the millions. The two-story garden apartment complex has 106 one-bedroom units and one two-bedroom caretaker apartment in multiple buildings along North Middletown Road.
The town board acts as the board of directors for Middlewood and has administrative responsibilities. ARCO Management Corp. manages the property.