Affordable Housing Firms Team to Acquire New Jersey Property
Forest Hill House, 505 Mt Prospect Ave, Newark, NJ
source: Affordable Housing Finance on: May 22, 2024.
Tredway and LIHC Investment Group announce $40 million in financing to preserve senior housing in Newark.
Tredway and LIHC Investment Group have acquired a 100-unit senior housing community in Newark, New Jersey.
After purchasing Forest Hill House for $17.3 million, the joint venture will begin redeveloping the property to encourage aging in place and enhance energy efficiency by investing upward of $20 million in improvements and upgrades, according to officials.The developers have also committed to extending the income restrictions governing the development for another 30 years, ensuring it remains available to serve those with incomes less than 60% of the area median income (AMI).
“We are excited to embark on this ambitious redevelopment, which will protect and improve homes at Forest Hill House for lower-income seniors while keeping affordability intact,” said Will Blodgett, CEO and founder of Tredway, an affordable and mixed-income real estate developer. “Not only does this project allow for the preservation of an important source of affordable housing for the city of Newark, it also provides an opportunity for seniors to live their lives and age independently in a home they can be proud of.”
Apartments in the 10-story building will receive new windows, air-conditioning units, Energy Star appliances, and accessibility upgrades. Kitchens and bathrooms will be fully renovated to include new cabinets, countertops, tiling, tubs, fixtures, and flooring. Common areas of the property will be equipped with free communitywide Wi-Fi and an upgraded security system, and the building’s patio will be refurbished with new furniture and landscaping, announced the partners.
Residents will benefit from new amenities aimed at improving health and well-being and fostering connectivity, including an on-site doctor’s office to accommodate house calls, an on-site nurses’ station and exam room, a beauty salon and barbershop, and a new age-appropriate fitness and mobility room. Residents will also receive transportation to the grocery store through Northward Senior Transportation. Additional services will be implemented based on resident feedback in cooperation with Rainbow Housing Assistance Corp.
To ensure the entire property is maximized for energy efficiency, the building’s roof will be replaced, an emergency generator will be installed, lighting will be converted to LED, and the developers will undertake insulation, boiler, and ventilation upgrades across the complex.
“The rehabilitation of the property, along with new amenities and comprehensive services for residents, underscores our commitment to helping vulnerable seniors access the types of homes and support they need to live comfortably and with dignity,” said Andrew Gendron, principal at LIHC Investment Group, one of the nation’s largest affordable housing owners with nearly 20,000 units.
Forest Hill House is being financed with a Federal Housing Administration-insured Section 221d(4) permanent loan from Rockport Mortgage Corp. through a New Jersey Housing and Mortgage Finance Agency conduit bond issuance, 4% low-income housing tax credit equity provided by Regions Affordable Housing and Bank of New York Mellon, state Aspire tax credits, and owner equity.
Other team members include nonprofit partner Affordable Housing Institute, property manager SHP Management, general contractor ETC Cos., and architect Inglese Architecture + Engineering.
source: Affordable Housing Finance.
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