NJ Affordable Housing Nabs $75M Refi
- Aug 15, 2016
West New York, NJ—Love Funding, which specializes in FHA multifamily, affordable and healthcare financing, has closed on $75.3 million in loans to refinance Parkview Towers and Clock Tower Apartments. The two properties are affordable apartment communities under the same ownership in New Jersey, in the metro New York market.
Parkview Towers is a 688-unit development in West New York, NJ. The community includes 684 Section 8 apartments and four market-rate units in two 24-story apartment buildings originally built in 1974.
Clock Tower Apartments, which is in Hoboken, is a six-story building converted into apartments in the 1970s, having been a factory producing telescopic sights, slide rules and other precision instruments. Of its 173 units, 90 are market-rate, while 68 receive project-based Section 8 rental assistance and 14 are special voucher units.
Parkview Towers is owned by Parkview Towers LLC and Clock Towers Apartments is owned by Jefferson-Adams Rehab Co. The two ownership entities share principals. Both properties are managed by Parkview Management Corp., which specializes in affordable multifamily communities.
Love Funding senior director Laura Saull-Smith obtained the funding through the HUD’s 223(a)(7) loan insurance program, which allows as much as 12 years to be added to an existing HUD mortgage’s remaining term. The program provided the ownership team with low-rate, non-recourse financing to refinance the existing debt and lower the debt service on the loan, providing more than $500,000 in annual savings, according to Saull-Smith.