Affordable housing investor LIHC has closed on a $140 million loan to refinance a 688-unit apartment property in West New York, New Jersey.
The deal will keep Parkview Towers affordable for another 39 years and allow the owner to undertake an $8.4 million property-wide renovation campaign.
The FHA loan was funded by Rockport Mortgage Corporation.
“Parkview Towers is the largest and likely the most important affordable housing resource in West New York,” noted John Dromey, Senior Vice President and Deputy Chief Underwriter of Rockport Mortgage Corporation. “Parkview is an exceptional property in a great location. This loan transaction will allow the property to remain an important affordable housing resource long-term.”
Owned by LIHC Investment Group, Parkview Towers comprises two 24-story buildings located on a bluff overlooking the Hudson River. Amenities include a laundry, on-site parking and a community room, security guard service, as well as an extensive security camera network.
All households at Parkview Towers are covered by a Project-Based Section 8 contract that limits how much tenants contribute toward rent to 30 percent of adjusted gross income.
As part of the loan refinancing, LIHC has agreed to enter into a new 20-year Mark-up-to-Market Section 8 Contract, which will ensure the property remains affordable to very low-and low-income families for another 39 years, through 2059.
The refinancing will help fund a renovation that will include new kitchen cabinets with granite countertops, new ranges, refrigerators, and faucets, new bathroom vanities with medicine cabinets, floor tiling, and tub surrounds.
Modifications will also be made to increase the number of accessible units at the property from 25 to 35.
Demand for homes at Parkview remains high, with occupancies averaging over 98 percent during the past three years and a waitlist of more than 350 prospective tenants.
Recently, Rockport has provided financing for several other LIHC-owned properties, including a $74 million FHA 223(f) multifamily loan for Little Italy Restoration Apartments in New York, NY; a $65 million FHA 223(f) multifamily loan for Renwick Garden Apartments in New York, NY; $42.5 million FHA 223(f) multifamily loan for Malcolm Towers in Fort Lee, NJ; and a $27 million FHA 223(f) multifamily loan for Mansion Apartments in Pine Hill, NJ.