Carthage Real Estate Advisors has closed on the recapitalization of three projects, utilizing the Rental Administration Demonstration program created by HUD in 2013.
The properties will receive just over $7,000,000 in capital improvements and ensure more than 350 apartments are preserved as affordable housing for low income families at these properties.
Carthage was able to create partnerships with several non-profit organizations with ownership stakes in these properties.
In Buffalo, NY, Carthage worked with Trinity Towers Inc, an affiliate of a local Lutheran Church, to preserve approximately 90 units of senior affordable housing.
In East Orange, NJ, Carthage worked with the East Orange Senior Citizens Council to preserve more than 200 units of affordable housing for seniors.
Carthage also purchased and renovated an 87 unit senior building in East Orange called McIver Homes.
Edward Poteat, president of Carthage Advisors says of the transaction, “RAD is the greatest thing since sliced bread.
“By swapping expiring Section 236 rental assistance contracts for long term Section 8 contracts, RAD allows us to stay true to our triple bottom line approach of sustainable developments which are profitable for our investors and profitable for the overall community.
“Given the complexities of the RAD process, Carthage could not have completed these transactions without the assistance of the many attorneys, lenders, and syndicators involved in these deals. HUD’s Office of Affordable Housing Preservation was especially helpful in ensuring that these projects closed on a timely basis.”
Key players for the developments in New Jersey included Citibank, PNC Bank, New Jersey Housing Mortgage and Finance Agency, and the East Orange Housing Authority.
For the development in Buffalo, key players included Stratford Capital, Red Stone Capital, the Buffalo Municipal Housing Authority, New York State Housing Community Renewal, and Stuart Alexander and Associates.
Carthage Advisors is a leading developer of workforce housing in the Tri-State New York Area. The company has worked with a variety of clients and municipalities in New York, New Jersey and Connecticut to produce workforce and supportive housing developments that improve communities and generate economic development activity.