The Michaels Organization has begun site work for the second phase of 2720 Fire Road, an affordable community in Egg Harbor Township, N.J., after having secured construction financing. Phase 2 is set to encompass 60 apartments, reserved for households earning between 30 and 60 percent of the area’s median income. The team developing the $15 million project includes general contractor Michaels Construction and architect Kitchen & Associates. Completion is expected in early summer of 2021.
Financing sources for the new construction include $3.9 million in private equity derived from a Berkadia investment in low-income housing tax credits, as well as $8.2 million in bonds from the New Jersey Housing and Mortgage Finance Agency. The project also received $8.6 million from New Jersey’s Hurricane Sandy relief funds.
The project’s second phase will consist of three-story buildings with one- to three-bedroom floorplans. A community center was built during the first phase, featuring laundry facilities, a computer center and a playground. Upon completion, the community will be managed by Michaels Management, Affordable Living.
Located almost 5 miles northeast of the city center, the development site is some 8 miles from Atlantic City and its beaches. The surrounding area holds various dining and shopping venues, such as a Walmart Supercenter and Harbor Square Shopping Mall.
The project’s first phase
According to The Press of Atlantic City, The Michaels Organization broke ground on the 76-unit first phase of the project in 2016, delivering the first apartments in 2017. As per the agreement with the Federal Emergency Management Agency, hurricane-impacted residents were given priority when renting. The developer also started the reforestation of 6 acres of woodlands surrounding the development site, a process that will continue during the project’s second phase.
The Michaels Organization has been active in the New Jersey area. In November, the company also started construction on a 60-unit affordable community in Newark. The $19 million project is part of the city’s Central Ward neighborhood revitalization.