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Dangerous Ocelot Purged From Bronx Multifamilies
Multifamily Investor has tracked the saga of Ocelot Capital Group‘s dilapidated Bronx apartment building portfolio. Omni New York, the winning bidder, purchased the collateral for the current loan portfolio of 14 buildings—consisting of 416 units, with a mortgage debt totaling $23.8 million—from Fannie Mae and Deutsche Bank at a discount. The sale price was not disclosed. The city said there were about a dozen bidders, a mix of nonprofits and for-profit real estate companies that have a proven ability to rehabilitate and manage distressed properties.
Ocelot bought the Bronx buildings for $36 million near the top of the real estate boom in 2007. Fannie purchased the $29 million loan on the Ocelot buildings from Deutsche Bank and discovered the loan didn’t meet its underwriting standards. The loans went into foreclosure in March.
Omni has already committed to investing up to $1 million in emergency repairs. Since 2004, the Manhattan-based firm has acquired and rehabilitated or is in the process of rehabilitating 2,937 units of affordable housing in New York state.
The city’s Department of Housing Preservation and Development began working with Fannie this summer to find a new owner for the Ocelot buildings. Since then the city has been making emergency repairs to the buildings. According to HPD, more than $1.3 million was spent on immediate fixes to hazardous conditions in the buildings.
Hat tip: Crains
Omni is led by former NY Mets’ first baseman Mo Vaughn. Apparently, it took a Met to get an Ocelot to Mo Vaughn.
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Check out what others are saying about this post...[...] It abandoned 416 units in 14 buildings, leaving its tenants in life-threatening situations. Omni New York purchased the mortgages from Fannie Mae and Deutsche Bank at an unspecified discount. Fannie Mae and New York City (like many other municipalities) were battling over who foots the [...]