Colliers International closed the multifamily sale of the Norman Towers, a Section 8 senior living community in East Orange, NJ for top market value of $94,000,000.
Located at 500 N. Walnut St. East Orange, NJ 07017, the 405-unit property built in 1980 has not received any major renovations since the original construction and Affordable Housing mandates for the property were set to expire in 10 years.
As part of the purchase agreement, that will now be extended for 30 years. Colliers represented the seller, Squiretown Properties LLC in this transaction with the buyer, Community Preservation Partners & L+M Development Partners.
“We are so proud to have closed this deal after just 45 days on the market with more than 14 qualified offers that allowed us to gain top market value for the asset,” said Colliers Vice President, Affordable Housing Group, Jessie Elsanhuty. “While we were challenged with a smaller buyer pool for this type of asset due to its boutique size, we were able to garner a great selling price and to ensure the property would be preserved and remain affordable.
Knowing that successfully completing the transaction would require navigating the historically difficult NJHFA and circumventing challenges within the agency, the Colliers Affordable Housing Group knew that it had to target a specific buyer pool. Particularly, a very experienced tax credit affordable developer, with intimate experience working within the state of New Jersey and successfully working with varying agencies to effectively complete the transaction.
Additionally, a PILOT was obtained with the city and the property to secure the equity needed to undergo a $23 million dollar rehabilitation.