DEAL OF THE DAY: CPC Provides $2.3M Loan to 100-Unit LIHTC Project

By Anuradha Kher, Online News EditorBlackwood, N.J.–The Community Preservation Corp. (CPC) recently closed a $2.3 million loan through its Trenton office to fund the acquisition of the Scenic Falls Apartments, a 1000-unit garden-style apartment complex located in Blackwood, N.J. Scenic Falls was developed in 1996 as a Low Income Housing Tax Credit (LIHTC) project.CPC, a non-for-profit mortgage lender, provided the permanent loan for the acquisition of the property by a Brooklyn-based real estate developer and manager. The property also has a $845,000 second mortgage assumed by the developer through the New Jersey Department of Community Affairs (NJDCA), which extends the affordability period of the rental units by 15 years. “We worked very closely with NJDCA on this to ensure that the refinancing of the first mortgage would preserve the affordability requirements established when the complex was first developed in 1996,” says Robert Riggs, vice president and regional director of CPC’s Trenton office. “The use of tax credits established a 15-year period for the units to be affordable. The second mortgage extended that period by another 15 years.”The Scenic Falls Apartments feature one- and two-bedroom apartments, in eight, three-story buildings. “The property is in excellent condition, with many long-term residents residing there,” Riggs says. About $220,000 of the loan will go to making some minor repairs. The roof will be fixed and there are minor drainage issues as well.