Hudson Valley Property Group has announced the completion of a $57 million preservation project at Corinthian Towers, a 221-unit fully affordable multifamily community in East Orange, N.J.
Renovation costs totaled $11.5 million, or approximately $50,000 per unit. HVPG acquired the property back in 2021 from Essex Plaza Management in a $30.3 million transaction, according to Yardi Matrix data. Corinthian Towers was also subject to a $48.2 million loan originated by PNC Bank, the same source shows.
Project financing included private equity from the Hudson Valley Preservation Fund LLC, NJHMFA tax-exempts bonds and 4 percent LIHTC purchased by PNC; a construction loan provided by PNC, as well as a Freddie Mac credit enhanced Tax-Exempt Loan. The City of East Orange also supported the project through a long-term PILOT Agreement.
A subsidy through a HUD project-based Section 8 Housing Assistance Payment contract was applied to all apartment units. HVGP was also able to obtain a new 20-year term HAP contract.
Complex renovations and infrastructure upgrades
Dating back to 1928, the Corinthian Towers community features studios, one- and two-bedroom apartments ranging between 460 and 790 square feet. The property received many interior upgrades, as well as complex-wide infrastructure modernization. HVPG has renovated the lobby and flooring while preserving the character of the old building, the elevator was changed in favor to a modern one and the boilers, generator and roofing were replaced. Advanced cameras were also installed for site monitoring and security.
The community is located at 67 Munn St., near interstate 289 and Garden State Parkway. A variety of dining options, retail spaces and entertainment venues are situated in the property’s proximity, such as The Wellmont Theater and Montclair Art Museum. Mountainside Medical Center is only a 15-minute drive from the property. Several green areas are within a 2-mile radius from the site, like Eagle Rock Reservation, Nishuane Park and Edgemont Park.
HGPV recently closed its second real estate private equity fund after raising $292 million in capital commitments. Starting 2010, HVPG and its funds have utilized equity and capital to leverage more than $2 billion of investment into affordable housing.