LIHC Investment Group and Rockport Mortgage Announce $42.5M in Financing for Malcolm Towers in Fort Lee, New Jersey
Refinancing Extends Property’s Affordability Through 2046
FORT LEE, NJ (May 5, 2020)—LIHC Investment Group and Rockport Mortgage today announced the closing of an FHA 223(f) multifamily loan refinancing totaling $42.5 million for Malcolm Towers in Fort Lee, NJ. The property is owned by LIHC Investment Group, one of the nation’s largest real estate firms committed to the preservation of affordable housing.
Malcolm Towers is a 226-unit, age-restricted, subsidized Section 8 development located in a desirable residential neighborhood along Main Street in Fort Lee, approximately one mile from the George Washington Bridge. The Property, constructed in 1979, contains studio and one-bedroom apartments with private balconies. Malcolm Towers residents also enjoy a large community room, library, game room and private outdoor space with tables and benches.
Proceeds of the loan will be used to refinance existing debt and complete capital improvements at the development. Unit upgrades will include kitchen and bathroom renovations in all units, installation of new patio doors and in-unit windows. In addition to these upgrades, the building itself will be updated with, among other things, new boilers, new hot water tanks and new roof-top exhaust fans.
In connection with the refinancing, LIHC and HUD entered into a new 20-year Mark-Up-To-Market Section 8 Contract and agreed to further extend the Contract by the number of years remaining on the prior Section 8 Contract. This agreement will extend the property’s affordability another 26 years.
“Now more than ever, it’s clear that high-quality, affordable housing is critical to maintaining the health, safety, and well-being of our communities,” said Andrew Gendron, Principal at LIHC Investment Group. “By rehabilitating income-restricted homes and preserving them for the long term, property owners can actually help protect vulnerable populations in the face of new and emerging threats, like the ongoing COVID-19 pandemic.”
“It’s no secret there is a shortage of age-restricted, affordable rental housing in the Fort Lee area. Given the costs associated with new construction, the importance of being able to preserve existing properties, such as Malcom Towers, is critical to the health of this community and the New York/New Jersey metropolitan area in general,” said Dan Lyons, Managing Partner of Rockport Mortgage. “We are very proud to partner once again with the team from LIHC, as well as the regional HUD Office, to extend the affordability of this property through 2046.”
About Rockport Mortgage Corporation
Consistently ranked as one of the top FHA multi-family lenders in the country, Rockport Mortgage is a privately-held commercial banking firm located on the North Shore of Boston. Founded in 1992, Rockport Mortgage specializes in providing FHA-insured loans to market-rate, affordable and senior multi-family properties as well as assisted living and healthcare facilities. The Rockport Mortgage team works collectively to navigate the complexities of FHA/HUD-insured financing programs, developing strategic solutions to meet the diverse needs of its clients. For more information, visit www.rockportmortgage.com
About LIHC Investment Group
Led by Charlie and Andrew Gendron, LIHC Investment Group has grown to become one of the most respected real estate investment groups in the industry. The firm holds an ownership interest in 35,000 units of multi-family affordable housing nationwide and is ranked as one of Affordable Housing Finance Magazine’s Top 50 Affordable Housing Owners and Top 10 Companies Completing Acquisitions. Over the years, LIHC has transacted with over 4,000 Limited and General Partners to acquire well over $5.5 billion in holdings, primarily in metropolitan areas such as New York City and Boston. For more information, visit www.lihc.com