By D.C. Stribling
New Community Corp. (NCC) and Greystone Affordable Development, working with various public entities, have facilitated the acquisition of four affordable housing properties totaling 842 units of Section 8 rental housing in Newark, N.J., in a $160 million transaction. The deal not only includes the acquisition, but also funding for the rehabilitation and the long-term preservation of the properties as subsidized rental housing.
The public partners in the deal included the New Jersey Housing and Mortgage Finance Agency and the City of Newark. Also, Hudson Housing Capital provided $48 million in low-income housing tax credit equity, alongside the $80 million in tax-exempt and taxable debt provided by Freddie Mac and Greystone’s Affordable lending arm.
As part of the preservation activities, units at the properties, which will be managed by NCC, will receive about $60,000 each for renovations. The work will include substantial upgrades to both the interior and exterior of the buildings provided by Claremont Construction Group.
NCC also provides services to residents. These include early childhood development, youth services, workforce training, adult continuing education, family transitional housing, food pantry, mental health services, extended care for seniors, a community newspaper, and arts and cultural events.
Greystone Affordable Development, an affiliate of Greystone & Co. Inc., focuses on recapitalization, rehabilitation and preservation of affordable housing nationwide. Thus far, the company has coordinated the preservation of over 10,000 apartment units with thousands more in various stages of completion in 10 states.