Jonathan Rose Cos. Sells Affordable NJ Asset
- Jan 08, 2019
SVN Affordable | Levental Realty has brokered the sale of St. Mary’s Villa in Newark, N.J., for $47.5 million. The company worked on behalf of seller Jonathan Rose Cos. The 360-unit affordable community is age-restricted.
Located at 425 Sanford Ave., St. Mary’s Villa provides easy access to Interstate 280. According to Yardi Matrix data, the 1982-built property features only one-bedroom units. Currently, the property is under a 20-year, option 3b HAP renewal contract that expires in 2024. The property underwent major improvement in 2004 and is encumbered by an M2M use agreement through 2034.
SVN Affordable Senior Advisor Jamie Renzenbrink led the transaction. “There were a few regulatory challenges that made this deal particularly difficult for most investors to pursue. We needed to target a specific type of buyer and structure a transaction with a creative capital stack that resulted in a viable deal for a buyer, but at market pricing that was compelling for the seller to transact,” said Gene Levental, managing director at SVN Affordable, in prepared remarks.
The new owner plans to implement energy efficient upgrades, including a new roof and solar panel installation, among others. Jonathan Rose Cos. is also rehabilitating another senior housing property it owns in the city. Grace West Manor Apartments is undergoing a $64 million renovation process after KeyBank Real Estate Capital provided the necessary funding at the end of last year.
Image courtesy of Yardi Matrix