Manager/Developer Sandra Erickson Brings Quality to Affordable Housing
From manager to developer, Sandra Erickson has been rebuilding neighborhoods in the Bronx, one affordable housing development at a time.
Focused on property management for more than 30 years, the president of Sandra Erickson Real Estate has been a developer for the past 18, and in 2015 was one of the first participants in a capacity building workshop for minority and women-owned business enterprises (M/WBE) created by New York City. Their goal: to work with the City to redevelop quality affordable housing.
“In 1999, I answered an ad from The New York City Housing Preservation & Development’s Neighborhood Entrepreneur Program, which helped to make neighborhood property managers into developers,” Erickson recalled. “It was for people who knew the neighborhoods well, and who understood all the challenges.”
The buildings awarded under the program often are in need of massive repairs, and frequently have been the site of illegal activity, she continued. Erickson and her daughter Danielle submitted a request for qualifications (RFQ) and were awarded the Clay Avenue Cluster, a six-building, 86-unit gut rehab for low-income housing.
After that, the company replied to other RFQs as well as requests for proposals (RFP), and also have done several Third-Party Transfer (TPT) projects with NYC HPD. In TPT, rather than sell foreclosed buildings, the City finds qualified sponsors to first stabilize, then secure financing to purchase and rehab these distressed occupied multifamily properties, keeping the rents affordable for current and future residents. Vacant apartments are awarded through a lottery.
“These renovations are substantial, so every apartment is new,” she said. “It’s a win/win for existing tenants, and in some cases for former shareholders.”
The company recently converted a $15 million construction loan for one of its TPT developments.
“HPD has been absolutely amazing in allowing small, local owner-managers to have the opportunity to be a developer,” Erickson continued.
But Erickson’s real estate career began long before that. In 1981, and already with an agent’s license, she answered an ad for a part-time real estate manager on Long Island. From that job she got her broker’s license and purchased her first building with 48 units on West 136th Street in Manhattan.
“I didn’t know the city well, so that was pretty courageous, I’d say,” she said. “And it wasn’t always easy, being a woman in this business. To this day, there are few women who’ve started and operate a property management firm.”
She launched Sandra Erickson Real Estate on July 3, 1984. Her daughter Danielle joined the company 22 years ago, and now holds the title of vice president. Her son Ron joined the family business 12 years ago.
“I was a single mom, so my children were used to mom being the boss,” she recalls with a laugh. “They remember when I started the company and I had to work on weekends. They respect hard work. We get along very well and enjoy working together. Each of us has a role. I work on development and asset management. My daughter oversees daily operations. And my son does the field work, including supervision of maintenance staff.”
Erickson’s firm is dedicated to taking care of its tenants. It’s not unusual for residents to greet Erickson and her team by name as they visit the buildings.
“Lending partners are surprised that tenants know who we are and that they’re friendly,” Erickson said. “Management is something you have to love to do, because it’s very challenging. Even one tenant declining to move to accommodate the rehab can result in serious financial consequences. That’s where the trust factor comes in.”
The skills Erickson honed as a neighborhood building manager have been absolutely key to her success, as she has focused her development on occupied rehab projects. And rehabs are a substantial part of Mayor De Blasio’s Housing NY Plan due to the age of the current housing stock and the critical need for affordable housing.
“The City is very sensitive to existing tenants who may have been former shareholders, so they want companies with strong tenant relation skills,” she said. “As for the construction lenders and tax credit investors, they look for management companies experienced with occupied rehabs. That’s our strong point: our proven track record.”
Integrity and community relations are also critical. A long-time member of Community Board 7, Erickson is currently vice president of the Bronx Chamber of Commerce. She is a past president and Danielle is the vice president of Owner-Management of the Bronx Manhattan North Association of Realtors.
“It’s crucial because you really see what’s going on. And the Bronx has seen a lot of development,” she said. “It’s undergoing quite a renaissance. I’ve been here since the beginning in the 1980s, so it’s quite exciting for me to be a small part of it.”
When she first took on the Clay Avenue project, the complex had been overrun. Today, the completed complex is approaching year 15, the point at which the tax credit benefits to the investors expire. While some projects have paid off their investors and can now pursue higher rents, Erickson is looking at a different approach.
“We’re going to work with the investor partner and extend the affordability to keep the units affordable for an extended period of time,” she said. “It just makes sense.”
Through the renovation and redevelopment of the buildings, adjacent buildings also redevelop, creating a dynamic new community.
“Affordable housing can be located in neighborhoods that face particular challenges. And buildings that are foreclosed on typically have the most challenges,” she said. “When a new manager with strong oversight comes in and redevelopment takes place, the neighbors are relieved.”
The City does give the developer time to perform emergency repairs and gain that trust with the current residents, she observes. And New York City has remained consistent with its commitment to affordable housing through different administrations.
“Everyone would agree that distressed housing needs to be rehabbed, and the tenants need to be cared for,” she said. “That has been seamless.”
Caring for others also infuses Erickson’s philanthropy, particularly the empowerment of women, a cause she supports and speaks about at community groups.
“I think my strongest trait is courage. That’s important. Women need to be bold and courageous and not let fear hold us back.”
Her firm is part of a joint venture team that was recently awarded vacant sites to create affordable rental and home ownership opportunities.
“We are so excited to be working on our first development of new construction,” Erickson noted.
Erickson’s own buildings are in her portfolio and she recently relocated the office to a property she purchased in 1989. This building, built in 1904, was rehabilitated using HPD’s 8A Loan program. “Asset management is a key to our business success. We love what we do.”
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