Michaels to Break Ground on New Jersey Affordable Project
A complex public-private financing was assembled for the development.
The Michaels Organization is set to break ground on Tavistock at Woolwich, a 72-unit fully affordable community in Woolwich, N.J. Urban Practice is providing architecture services while Michaels Construction serves as general contractor. The first units are slated to come online in late 2023.
Upon completion, the community will encompass six three-story buildings. Common-area amenities are slated to incorporate a fitness room, computer lab, clubhouse and supportive housing office space, as well as ample parking.
Located at the intersection of Center Square Road and Tavistock Drive, the 10-acre site is close to Interstate 295 and roughly 26 miles from downtown Philadelphia. Michaels Senior Vice President Nick Cangelosi said, in prepared remarks, that the community will come online in a high-opportunity neighborhood.
In early 2022, Michaels broke ground on the first phase of a $145 million mixed-income redevelopment project in Camden, N.J. Completion is expected by March 2023.
A complex financing package
The developer received both public and private funds, totaling $19 million, for this project. The financing package includes:
- $10.1 million from the sale of federal 9 percent low-income housing tax credits allocated by the New Jersey Housing and Mortgage Finance Agency;
- $1.4 million in subordinate finance from The Township of Woolwich;
- $5.2 million in permanent mortgage from the NJHMFA;
- $1.5 million from NJHMFA’S Affordable Housing Gap Subsidy Program;
- $750,000 from NHMFA Special Needs Housing Trust Funds.
In addition, TD Bank provided construction financing and Berkadia syndicated the tax credits.