LIHC Investment Group has obtained two loans for the refinancing of Verona Senior Citizens Apartments in Verona, N.J., and Mansion Apartments in Pine Hill, N.J. Rockport Mortgage Corp. closed the $51 million deals, which consist of U.S. Department of Housing and Urban Development Section 223(f) loans.
Furthermore, the owner of both assets entered into new 20-year project-based Section 8 contracts, expanding the affordability of the first property by 31 years and the affordability of the second one by 39 years. Roughly six months ago, Rockport Mortgage contributed to the 20-year affordability extension of another Northeast community.
Located at 100 Hillwood Terrace on 5 acres, Verona is a 160-unit age-restricted community. According to Yardi Matrix data, the property includes a six-story building, five laundry facilities and 65 parking spaces. Additionally, Verona features enhanced security, exterior sitting areas, a community room, a library and a game room.
Mansion Apartments is located at 220 W. Branch Ave., roughly 100 miles south of Verona and less than 20 miles from Philadelphia. The 360-unit development includes 19 two-story buildings with one and two-bedroom apartments. The community has two swimming pools, a playground and 423 parking spaces.
Upcoming capital improvements
The $24 million in loan proceeds for the 1981-built Verona will be used to refinance existing debt, as well as revamp the apartments and the building. Plans call for the renovation of all kitchens and bathrooms and the addition of vinyl flooring in half of the units not previously upgraded. In addition, new main entry doors are set to be installed, as well as a new emergency generator, a new energy recovery ventilation unit and an upgraded security camera system.
LIHC Investment Group received $27 million to finance repairs at Mansion. Building and unit upgrades include kitchen and bathrooms renovations and the installation of new HVAC systems in 50 percent of the apartments. The owner also intends to add new patio doors for the buildings, a new emergency generator, a sewage pump lift station and upgrade the buildings’ overall accessibility. Part of the loan will be used to fund the replacement reserve account for the 1973-built property.