$60M Deal Reached To Turn Old UWS Hotel Into Affordable Housing

UPPER WEST SIDE, NY — A deal has been reached on a planned $60 million conversion of an out-of-business and illegal Upper West Side hotel into an affordable housing residence for senior citizens.

The real estate developer Fairstead has partnered with the older adult service provider Project FIND to turn the Park 79 Hotel at 117 West 79th Street near Columbus Avenue into an affordable housing residence with 77 "high quality" units for senior citizens.

The project will be funded through a construction loan from Merchants Capital and a $28.4 million commitment from Freddie Mac, a mortgage loan company.

The $60 million figure is the total development cost of the project, according to a spokesperson for Fairstead.

Manhattan politicians lauded the deal on Monday.

"Obtaining financing is a step forward in the planned conversion of the Park 79 Hotel into senior affordable housing," said Manhattan Borough President Gale Brewer in a news release. "I look forward to the day when the Project FIND can welcome scores of older adults into a beautifully restored facility."

Upper West Side City Council Member Helen Rosenthal also praised the agreement.

"The reinvention of this neighborhood architectural gem to offer deeply affordable housing for seniors is exactly the kind of project our neighborhood and city needs right now," Rosenthal said in the news release. "Our seniors are some of our most vulnerable residents — and thoughtful projects like this ensure they can age safely in place in one of the best neighborhoods anywhere."

The city shut down the seven-story building at 117 West 79th Street after it was supposed to be used as single-room occupancy (SRO) housing, but owners instead operated it as a tourist hotel.

Fairstead acquired the building in 2016 for $22.5 million, according to Bloomberg.

The upcoming renovation will replace the existing units with 77 accessible apartments available to seniors aged 62 and older and incomes up to 40 and 50 percent of the median income in the neighborhood.

Project FIND told Bloomberg that residents of the housing units will be selected through a housing lottery, with apartments going for $550 to $700 a month.

Project FIND will also provide a multitude of on-site social services, including two full-time social workers for the resident community.

The signed deal says that the property will remain affordable for seniors for at least the next 60 years.