Overlook Terrace5701 Boulevard East
West New York, NJ LIHC Affordable
The steep cliffs of the New Jersey Palisades are among the most dramatic geologic features in the vicinity of New York City. The 300-unit Overlook Terrace sits on a bluff atop the Palisades and has incredible views of the Hudson River and New York City.
When LIHC Investment Group approached the owners of this property, there were restrictions on cash flow and low-income tenancies for over 15 years into the future. The property was also generating “phantom income,” resulting in a negative after-tax cash flow each year. To purchase Overlook Terrace, LIHC created a sales structure through the Installment Sales Method, providing the limited partner significant sales proceeds at closing and a stream of payments over a ten-year period. This arrangement resulted in attractive interest income and spread out the tax liability over a number of years.
5701 Boulevard East, West New York, NJ