Taconic Investment Partners, in Joint Venture with ING Clarion Partners, Acquires More Than 1,400 Middle-Income Bronx Apartments Second Major Purchase by Taconic in Middle-Income Housing In NYC's Outer Boroughs

NEW YORK CITY, March 28 - Taconic Investment Partners, in a joint venture with a commingled fund managed by ING Clarion Partners, has purchased the Eastchester Heights apartment complex, a 1,416-unit low-rise, moderate-income development in the Eastchester section of the Bronx, reports Taconic partner Charles Bendit.

The property was purchased from a joint-venture partnership between Urban American, L.P. and City Investment Fund. Aaron Jungreis of GFI Realty Services, represented the seller in this transaction.

The sprawling tree-lined apartment complex, with grassy interior courts and a large playground and soccer field, is the second recent middle-income housing acquisition for Taconic. Last September, in a joint venture with Apollo Real Estate Advisors, Taconic bought nearly 1,000 apartments - the remaining unsold units at Fairfield Towers, a 1,152-unit community - in the East New York section of Brooklyn. That joint venture is currently in the midst of a $40 million improvement program in preparation for a new condo offering aimed at middle-income buyers, including current tenants.

Eastchester Heights will be maintained as rental housing for middle-income families, according to Ari Shalam, director of acquisitions for Taconic.

"Not so long ago, in the 1990s, this was a very troubled property, and because of that situation, the entire surrounding community was in danger of sliding downhill," Mr. Shalam recalls. "But the preceding owners performed a heroic task in restoring the complex, physically and socially, to its current vital state. The entire Eastchester community is now a stable middle-class community on the upswing."

Mr. Shalam says Taconic will continue the ongoing renovation of apartments as they become vacant, but plans only modest changes to the overall development, which covers five square blocks. The buildings are attached four- and six-story dwellings. Ample shopping is nearby on Boston and Eastchester Roads, which border the complex.

"From an investment viewpoint, we anticipate that rents will gradually rise as the improving surrounding neighborhood continues to attract larger numbers of stable, working-class families," says the Taconic executive, noting that current rents average near $14 per square foot. "This is an investment in the future of a Bronx community that's been restored to life."

About Taconic Investment Partners

Founded in 1997, Taconic Investment Partners is a fully-integrated real estate investment company that acquires and develops office and multifamily properties. Taconic has acquired and redeveloped more than nine million square feet of property in New York, Chicago, Washington, D.C. and Atlanta.

About ING Clarion Partners

Founded in 1982, ING Clarion and its affiliates manage more than $45 billion in assets in the private equity, public equity, and public debt sectors of the real estate markets. Headquartered in New York, the ING Clarion organization has more than 600 employees located in major markets throughout the United States.

The firm is the U.S. investment management arm of ING Real Estate, a global real estate company active in investment management, development and finance. With a total business portfolio of nearly $120 billion and offices in 21 countries in Europe, America, Asia and Australia, ING Real Estate ranks among the world's strongest real estate companies.

ING Real Estate is part of ING Group, a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries.

More information about the firm is available at www.ingclarion.com.

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