Standard Communities Enters New Jersey With Atlantic City Buy
With a total capitalization of $38 million, the deal extends the senior housing community's affordability for another three decades.
Marking its first New Jersey acquisition, Standard Communities has purchased Baltic Plaza, a 169-unit affordable senior housing property in Atlantic City, N.J. The total capitalization of the deal, which preserves the asset’s affordability for 30 years, amounted to roughly $38 million.
Standard Communities, the affordable housing division of Standard Cos., closed the deal in a partnership with the U.S. Department of Housing and Urban Development and the New Jersey Housing and Mortgage Finance Agency. Financing included low-income housing tax credits, arranged in a partnership with PNC Bank, while Citibank provided additional resources.
Situated at 1313 Baltic Ave., the property was built in 1982 and has a project-based Section 8 contract. Atlantic City International Airport is 11 miles from the site, while the city’s rail terminal is within a mile.
Standard is planning to implement a $10 million capital improvement plan, slated for completion in 2022. The renovation will include upgrades to the residential units and common areas, as well as an overhaul of the building systems.
Energy and water conservation measures are also part of the renovation and are expected to reduce consumption by 27 and 22 percent, respectively. Upgrades include low-emissivity windows, LED lighting, efficient appliances and low-flow plumbing fixtures. Sustainable efforts are expected to lower the building’s carbon footprint by 315 metric tons of carbon dioxide per year.
The deal comes on the heels of Standard’s acquisition of Chesapeake Crossing, a 597-unit, mixed-income senior housing community in Virginia. The total capitalization of the deal was some $68 million, including planned renovation costs.