Affordable NJ Community Changes Hands
The new owner acquired Berkeley Terrace for a price tag of $12.2 million and plans to invest in extensive renovations. The project is slated for completion by August 2018.
By Mihaela Coste
Candlebrook Properties LLC acquired Berkeley Terrace, a 152-unit Section 8 community located in Irvington, N.J., for $12.2 million. The new owner plans to implement an extensive renovation of the property.
The purchase and financing of Berkeley Terrace was made possible by R4 Capital Funding, who purchased $16.3 million in tax-exempt bonds and $8 million in tax credit equity provided by Alliant Capital through their purchase of the Low-Income Housing Tax Credits and HUD’s provision of a Section 8 contract.
Located at 794 Grove St., the fully affordable Berkeley Terrace was built in 1947 and features one-, two- and three-bedroom units ranging between 670 and 1,000 square feet. The property is situated close to Garden State Parkway and Interstate 78.
According to Yardi Matrix data, the asset last traded in 2005, when the current seller, Madison Tri-State Management, purchased the property for $7.6 million from E & M Associates. In September 2011, the asset became subject to a $9 million loan held by a private lender.
The asset received a failing score under HUD’s Real Estate Assessment score and was in danger of losing the subsidy contract. Candlebrook’s improvement plan includes interior and exterior renovations and the total cost of the project is estimated at approximately $26 million. Construction is slated to begin in August 2017 and to be completed in August 2018.
Headquartered in New York, Candlebrook launched its business in 2005 and is focusing on the acquisition and repositioning of distressed apartment properties, the company’s portfolio encompassing more than 15,000 apartment units located in the New York City area and in the New Jersey and Philadelphia markets.
Image courtesy of Yardi Matrix