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Deals & Dealmakers

SELLING POINTS: New owners to upgrade affordable Mo Vaughn apartments

New owners to upgrade affordable Mo Vaughn apartments

Jaffe Family TIC LLC and E. Nelson Family TIC LLC are buying an affordable housing complex on Long Island for $42 million.
The new owners plan to spend more than $7 million renovating the 240-unit complex comprised of 14 buildings on S. Franklin Street, Martin Luther King Drive, Oakland Street and Doflon Street.
Tenants in the complex pay rent equivalent to 30 percent of their respective monthly incomes, under HUD regulations.
Fred Parola, executive director of the Town of Hempstead Industrial Development Agency (IDA), announced that the agency approved the sale and the assignment of existing economic benefits to the new owner.
“This complex has provided an affordable place for people to live in the Village of Hempstead for more than 70 years and our assistance package will provide continued affordable housing while helping the new owners re-invigorate the complex,” said Parola.
The IDA granted benefits in 2005 to the seller of the complex, Park Lake Residences LP, an affiliate of Omni New York LLC, a real estate business associated with former MLB star Mo Vaughn. Those benefits will expire on Dec. 31, 2021. The agency also granted a new 10-year package of benefits.
At an earlier hearing, the new owners said they would undertake new landscaping, repaint all the apartments, which were built in 1940, and replace kitchens and bathrooms when necessary.
The prospective owner said the renovations could not be accomplished without a property-tax abatement.

Signature scoops up another office asset

Denholtz Associates has sold a New Jersey office building for $19,750,000 to one of the state’s busiest office investors.
Signature Acquisitions purchased 100 Matawan Road, a Class A office building totaling 133,678 s/f in Matawan, in a deal brokered by CBRE.
“Signature Acquisitions continues to be one of the most active investors in our market and this purchase compliments the assets they own in Clark and Cranford while giving them a greater presence in Central New Jersey,” said Jeremy Neuer, a member of the brokerage team that included Jeffrey Dunne, Travis Langer and Zachary McHale.
100 Matawan Road is currently 85 percent leased after software company iCIMS relocated to Bell Works in Holmdel.
Signature plans to re-lease the iCIMS space, which features above standard finishes, while also leasing the remaining vacancy. With over 6.8 million square-feet of leases expiring over the next three years in the neighboring submarkets, 100 Matawan Road is in a favorable position to lease its vacant space. Dunne commented, “Ownership worked diligently to execute the building improvements that led to the long-term lease with iCIMS and other tenants. Signature Acquisitions hopes to bring this to the next level by backfilling the iCIMS sublet space along with lease up of the vacant space.”

Kalikow sees next genʼ opportunity in workforce housing

New York-based Kalikow Group has partnered with Stanley Markofsky’s Florida-based Skymark Real Estate Investors to buy 30.82 acres of undeveloped land located in Salisbury, MD.
The JV plans to develop a 288-unit multifamily garden style apartment complex over the next several years.
The land acquisition was financed by a $5 million equity investment and a $35 million loan for the $40.15 million project, secured through Columbia National Real Estate Finance, LLC based in Baltimore, MD under the HUD 221 d4 program.
The development, Coventry Square Apartments at Aydelotte Farms, will be located on Still Meadow Boulevard in the northeast section of Salisbury.
“We’re very excited to continue to develop our southeast investment strategy, deploying our capital in creative ways that will yield attractive returns while developing strong communities in sought-after, up and coming areas of the country, for residents to enjoy at an affordable price,” said Greg Kalikow, Vice President at Kalikow Group.
“Coventry Square, along with our developments in North and South Carolina comprise a growing portfolio of communities to serve the next generation of our country’s workforce looking for neighborhoods filled with amenities that are located near their offices and their children’s schools.”

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