In its first acquisition in New Jersey, Standard Communities, the affordable housing division of Standard Companies, has acquired Baltic Plaza Apartments, a 169-unit affordable senior community in Atlantic City. The total capitalization of this transaction is approximately $38 million.
Built in 1982 and located at 1313 Baltic Avenue in Atlantic City, Baltic Plaza’s units are supported by a Project-Based Section 8 Housing Assisted Payment (HAP) contract.
Standard Communities completed this transaction in partnership with the U.S. Department of Housing and Urban Development (HUD) and the New Jersey Housing and Mortgage Finance Agency (NJHMFA). The transaction was financed with Low Income Housing Tax Credits (LIHTC) arranged in partnership with PNC Bank, with additional financing provided by Citibank.
“Standard is pleased to partner with the New Jersey Housing and Mortgage Finance Agency, who have worked tirelessly to ensure the creation and preservation of affordable housing in this critical time,” said Scott Alter, Principal and Co-Founder of Standard Communities.
With an approximately $10 million renovation planned, Standard will provide residents with updated units, upgraded common area and amenity spaces, and modernized building systems.
“This public-private partnership will extend the affordability of all 169 units for the next 30 years and facilitate a transformative renovation that will dramatically enhance the resident experience,” said Melanie R. Walter, Executive Director, New Jersey Housing and Mortgage Finance Agency.
The renovation also includes energy and water conservation measures, including low-emissivity windows, LED lighting fixtures, low-flow plumbing fixtures, ENERGY STAR rated refrigerators and air-conditioning units, and smart thermostats in all apartments. These conservation measures are expected to reduce energy consumption by 27 percent and water usage by 22 percent, collectively saving Baltic Plaza residents over $31,000 per year in utility bills. The amount of electricity and natural gas saved by these energy efficiency measures will reduce the building’s carbon footprint by 315 metric tons of carbon dioxide per year – the equivalent of approximately 800,000 miles driven by a typical passenger car.
Standard Communities will provide Baltic Plaza residents with support and resources, including a Resident Service Coordinator at the property to design and implement a comprehensive suite of resident services and community programs. These include access to wellness programs and special events. These resident and community services will be based in a renovated amenity spaces and provided at no cost to residents.
“Standard strives to connect our capital with our values,” said Scott Alter, Principal and Co-Founder of Standard Communities. “This public-private partnership is a major investment in Atlantic City that will leverage local resources to serve our residents, and renovations on the property will provide significant utility savings for the residents through our sustainability initiatives at Baltic Plaza.”
“Our approach to working collaboratively with federal, state, and local agencies allows us to produce high-quality affordable housing opportunities and provide access to services that allow our residents to thrive with minimal reliance on scarce public resources. Upon completion of the renovation next year, Baltic Plaza will be emblematic of that dedication and creativity,” said Steven Kahn, who is responsible for Standard Communities’ acquisitions in New Jersey and Pennsylvania.
Based in New York and Los Angeles, Standard Companies has a portfolio of over 14,700 apartment units, including approximately 11,000 affordable units, and has completed more than $2.6 billion of affordable housing acquisitions and rehabilitations nationwide. The affordable housing division of Standard Companies is Standard Communities, which strives to cultivate long-term public and private partnerships to produce and preserve high-quality, affordable, and environmentally sustainable housing.