Date: October 2025
Developer: Backyard (Coby Lefkowitz & Roee Gold)
Deal Type: Ground up multifamily
Location: Kingston, NY
Deal Overview
Ground up multifamily construction project consisting of 43 new homes + 3 retail spaces, 5-minute walk from downtown Kingston. Mix of affordable and market-rate units (80% blended AMI). Target returns supported by state/county financing, density, efficient floorplans, and off-site parking.
Business Plan:
- As-of-Right Entitlement: Under Kingston’s new form-based code (no parking minimums, simplified approvals)
- Lease-Up: workforce/middle-income rents affordable at 60-90% AMI; avg. trended 1BR rents underwritten at $1,626 vs. $2,100-2,200 existing comps (25% discount)
- Hold Strategy: Build, lease-up, auto-refi into permanent state-backed loan; potential 10-year hold or portfolio-level sale
- Tax Benefits: 421-P abatement (3 years full, 25-year phase-out)
- Status: property acquired, site plans submitted, preliminary sign-off from City (+ support from every relevant department incl. fire, engineering, buildings, planning, mayor)
Headline Metrics
| Metric |
Value |
| Total Project Cost |
$11.7M |
| Stabilized NOI |
$750k |
| Unlevered Yield on Cost |
6.6% |
| Cash-on-Cash |
35% |
| Hold Period |
10+ Years |
| Project IRR |
24% |
| Equity Multiple |
4.4x |
| Acquisition Price |
$552k |
| Exit Cap Rate (Assumed) |
6.25% |
| Stabilized DSCR |
1.45x |
Capital Stack:
- Total Development Cost: $11.7M
- Equity: $1.3M (11% of total) - in talks with Ulster County on equity grant funding
- Debt: $10.4M (91% of total) - 4.7% blended interest rate PLP+CPC (state-sponsored and philanthropic)
- Both remain or convert to perm, eliminating takeout risk
- State has underwritten DSCR above
- Non-recourse on perm loan
Physical Design:
- 31,000 built SF
- Courtyard townhomes
- 46 total units (43 homes - 16 1BRs, 23 2BRs, 4 3BRs, 3 retail spaces)
- Stick-built, garden style low rise, walk-up format
- IRC code
- No elevators
- No on-site parking (plan to use near-site parking; details below)
- Plans & renderings available below
Impact & Affordability Framework
Kingston’s rental market is extremely tight, with market-rate vacancy around 2% and rents up 50% over the past 5 years. The project is structured to meet overlapping city, state, and lender affordability requirements while maintaining financial feasibility.
- 421-P abatement: Requires 25% of units ≤ 80% AMI
- City inclusionary requirement: 10% of units ≤ 80% AMI and up to 5% workforce units ≤ 120% AMI
- Lender mandate (CPC / PLP): Program eligibility requires average project affordability ≤ 80% AMI
- Resulting mix: ~20% of units at 60% AMI, ~40% at 80% AMI, remainder at 90% AMI (market-rate), satisfying all program thresholds while preserving underwriting flexibility
- Outcome: Aligns tax, city, and financing requirements without triggering LIHTC-level compliance, supporting long-term viability within Kingston’s workforce housing range
Market Info
