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Bronx, New York – January 21, 2022 – Phoenix Realty Group (PRG), a national multifamily real estate fund manager, investor, operator and developer, purchased Keith & Kelly Portfolio jointly with a third party family office and discretionary affiliated investment vehicles. The portfolio comprises of 613-unit low-income housing property located at 2375, 2405 & 2475 Southern Blvd. in Bronx, New York, located among the district’s distinguished schools including Fordham University, medical facilities including world recognized St. Barnabas Hospital, and recreational facilities such as the Bronx Park, the Bronx Zoo, and New York Botanical Gardens. just steps away from bus service along Southern Boulevard, Webster Avenue, and East 180th Street. The Property is less than a mile from the Pelham Parkway stop of the 2/5 subway trains that provide service to the Bronx and Manhattan and 0.7 miles from the Fordham Road stop of the Metro North rail line that provides service to Westchester County and direct access to Grand Central Station in Manhattan.

PRG will operate the rental community and plans to renovate, upgrade and modernize the properties. The portfolio will undergo significant common area and renovations to many of the unit interiors. The common area renovations will include extensive repairs to the parking garages, upgrades to the exterior landscaping and recreation areas, renovation of the lobby and building entrances, new flooring and painting in all common areas, a new trash compactor, and a new security systems. The unit renovations will include new appliances, electrical fixtures, sinks, cabinets, and countertops in the kitchens, as well as new vanities, shower bodies, lavatories, GFI outlets, and tiling in the bathrooms. Each apartment will also receive new electrical panels and new door hardware.

One of the properties currently has a Rental Assistance Payments (RAP) Contract covering 124 of its 311 apartments (approximately 40% of the units), which is set to expire at the end of this year. To support the preservation and improvement of public housing, HUD established the Rental Assistance Demonstration (RAD) program, aimed at addressing the $26 billion backlog in deferred maintenance nationwide. RAD also allows owners of certain HUD “legacy” programs—including Rent Supplement, RAP, and Section 8 Moderate Rehabilitation—to convert assistance into long-term, project-based contracts that support financing for necessary improvements. Under the RAD program, HUD will issue a new Project-Based Rental Assistance (PBRA) contract for 248 of the 311 units. An additional 32 units that do not qualify for PBRA will receive Enhanced Vouchers through HPD. In contrast, the second property does not have any project-based rental assistance and is therefore ineligible for RAD. However, due to the requirements of the tax-exempt bond financing, at least 35% of its units must be rented to households earning no more than 60% of the Area Median Income (AMI), with the remainder subject to an 80% AMI income cap. At closing, tenants earning below 95% of AMI will receive Enhanced Vouchers through the Section 236 decoupling process, with rents set at market rates as determined by HPD. As these voucher-holding tenants vacate their units, the apartments will revert to the 80% AMI income restriction, unless a new tenant holds a Section 8 voucher. This reversion assumes that 25% of the units remain leased at 60% AMI.

Completed in 1974, Keith & Kelly Portfolio consists of three high-rise residential buildings ranging from 13 to 24 stories.  Unit configurations include 185 studio units (30.2 percent), 196 one-bedroom units (32 percent), 179 two-bedroom units (29.2 percent) and 53 three-bedroom units (8.6 percent).

About Phoenix Realty Group

Phoenix Realty Group LLC (www.phoenixrg.com) is a 25-year old private equity real estate investment firm focused on multifamily residential properties in higher barrier-to-entry and infill markets. The firm is headquartered in New York City with investment and asset management personnel in California and Florida. The firm has three business lines: value-added, new construction and affordable housing. In its value-added strategy, PRG’s goal is to acquire, renovate and reposition Class A and B urban and suburban multifamily properties in primary and secondary metropolitan areas to increase both ongoing cash flows and overall property appreciation. As of June 30, 2025, PRG manages approximately $2.25 billion in gross real estate assets and approximately 10,000 apartment units across the U.S. PRG’s principals have on average nearly 30 years of successful experience in multiple investment cycles and an investment track record of more than $12 billion of assets, over 1,000 properties and 130,000 multifamily rental units.