NHPF Lands $56M Refi for 2 Newark Affordable Communities
A total of 15 out of the 143 units will be set aside for individuals in need of permanent supportive housing.
The NHP Foundation, a national not-for-profit provider of affordable housing, has secured $56 million for the recapitalization of New Center City and New Irvine Turner Apartments, two affordable housing communities in Newark, N.J.
Combined, the two communities have 143 Section 8 units, out of which 15 will be set aside for individuals in need of permanent supportive housing. The New Center City renovation is slated to be completed by October 2022, while the New Irvine Turner one is expected to be completed by July 2023.
The $56 million financing includes the tax-exempt bonds allocated by New Jersey Housing Mortgage and Finance Agency (NJHMFA), as well as 4 percent LIHTC and Special Needs Housing Trust Funds; LIHTC Syndication from Enterprise Community Partners; an FHA 223f/241a loan from Lument Capital; HUD for Section 8 Chapter 15 renewal; a tax credit bridge loan from Cedar Rapids Bank & Trust and additional funding from the Federal Home Loan Bank’s Affordable Housing Program through the M&T Bank.
Built between 1900 and 1969, New Center City includes two four-story buildings comprising 49 units. The two buildings are situated on two separate sites, within less than half a mile of each other: one at 76-80 Court St., and the other at 40-44 West Kinney St. All units are set aside for individuals earning at or between 30 and 50 percent of the area median income. Both buildings were partially renovated in 1985 and 1995.
Irvine Turner Apartments consists of four four-story buildings comprising 93 units across two different sites on Belmont Avenue. Community amenities include laundry and recreation rooms. A total of 130 parking spaces are also available. All units are set aside for individuals earning at or between 30 and 50 percent of the area median income.
NHPF plans to invest in site and exterior improvements, replace mechanical systems, perform structural repair and reconstruction, as well as renovate all units and common areas. The property is expected to include a management office and resident services office. One of the buildings, 80 Court St., which is part of New Center City, will be historically preserved. Those living in the permanent supportive housing units will benefit from case management services provided by the Newark YMCA.
Both communities are near transit lines. New Center City is less than a mile of downtown Newark, while Irvine Turner Apartments is some 5 miles north. Both communities have several retail, dining and entertainment options within a 1-mile radius.
Elsewhere in the city, in one of the largest multifamily moves in Newark during the past 12 months, Fairstead and LIHC Investment Group acquired a 691-unit affordable portfolio, with plans to invest more than $27 million as part of a comprehensive improvement plan.