Los Angeles-based Standard Communities is expanding its footprint in New Jersey with its acquisition of a second affordable housing complex in Atlantic City.
Standard, making its second purchase in the gambling mecca since April, has bought New York Avenue Apartments, a 151-unit affordable senior housing property at 233 N New York Ave., as part of a public-private partnership.
The sale price was $16.5 million, according to CoStar data. The total capitalization of the deal was about $35.9 million, said Standard, which plans to do a roughly $10 million renovation of the property.
Standard partnered with the U.S. Department of Housing and Urban Development and the New Jersey Housing and Mortgage Finance Agency on the transaction, which was financed with low-income housing tax credits arranged in partnership with PNC Bank, with additional financing provided by Citibank.
While Atlantic City’s gambling industry has bounced back amid the pandemic, the seaside resort’s neighborhoods off the boardwalk are still struggling. Local officials and developers say the city needs more housing options. The southern end of New York Avenue is located in the Orange Loop,a section that several developers are trying to revitalize with restaurants and multifamily housing.
Standard’s most recent purchase is very similar to the acquisition it made in April of Baltic Plaza Apartments, a 169-unit senior housing development at 1313 Baltic Ave. in Atlantic City in a $19.2 million deal, according to CoStar data. In that transaction, Standard also partnered with HUD and NJHMFA, with financing from low-income housing tax credits arranged with PNC Bank and additional financing provided by Citibank.
New York Avenue Apartments was built in 1980 and is supported by a project-based Section 8 Housing Assisted Payment, or HAP, contract. As part of the purchase, Standard said it has agreed to preserve the affordability status of its apartments for 30 years.
*Article courtesy of CoStar
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