Standard Communities said Aug. 26 it expanded its presence in New Jersey with its second acquisition in Atlantic City since April.
Leading a public-private partnership, Standard acquired New York Avenue Apartments, a 151-unit affordable senior community. The total capitalization of this transaction is approximately $35.9 million.
Built in 1980 and located at 233 N. New York Ave., the units are supported by a Project-Based Section 8 Housing Assisted Payment (HAP) contract.
The transaction was completed in partnership with the U.S. Department of Housing and Urban Development (HUD) and the New Jersey Housing and Mortgage Finance Agency (NJHMFA). It was financed with Low Income Housing Tax Credits (LIHTC) arranged in partnership with PNC Bank, with additional financing provided by Citibank.
233 N. New York Ave., Atlantic City – STANDARD COMMUNITIES
“Standard is not only investing in the building; we’re investing in the people who call this community home. We are proud of this public-private partnership, which not only provides these residents with the peace of mind that comes with a commitment to long-term affordability at the property, but will result in nearly every aspect of the property being upgraded and modernized,” said Steven Kahn, who is responsible for Standard Communities’ acquisitions in New Jersey and Pennsylvania.
Standard will oversee a renovation budgeted at more than $10 million, “that will dramatically enrich the resident experience,” said Scott Alter, principal and co-founder of Standard Communities.
“This renovation will revitalize the property, improving energy efficiency and comfort throughout the living space. This partnership between Standard Communities and NJHMFA will allow for New York Avenue Apartments to serve as a high-quality, affordable housing for many years to come,” added Melanie Walter, executive director of the New Jersey Housing and Mortgage Finance Agency.
The renovations include significant energy and water conservation measures, including low-emissivity windows, LED lighting fixtures, low-flow plumbing fixtures, ENERGY STAR rated appliances, and improved HVAC controls and systems. These energy conservation measures are expected to collectively reduce energy consumption by approximately 20% and, when combined with expected reductions in water usage, are anticipated to save New York Avenue Apartments residents more than $20,000 per year in utility bills.
These energy efficiency measures will reduce the building’s carbon footprint dramatically each year, with a reduction in greenhouse gases equivalent to the output from driving a passenger car more than 600,000 miles per year. Similarly, the water saved by the energy efficiency measures each year is equivalent to the volume of over three Olympic-sized swimming pools.
Renovations also include upgrading existing community spaces, improving exterior common space and grounds with resident amenities and installing storage units for residents. Building security will be enhanced, and improvements will be made to lighting, landscaping and signage. Building systems will be modernized, including plumbing and the roof.
Kahn of Standard added that “New York Avenue residents will receive support and resources designed to enrich their lives, including a Resident Service Coordinator at the property who will design and implement a comprehensive suite of resident services and community programs.”
“We strive to connect our capital with our values,” said Kahn.
