By Joshua Burd
A developer is tapping into the federal Low Income Housing Tax Credit program as part of a planned 84-unit, mixed-income rental project in Newark, in one of several recent transactions announced by Day Pitney LLP.
The law firm said it represented Broad Hill Partners in connection with its financing for the project known as City Hall Apartments, which is slated for 915-933 Broad St. The development will be financed in part using 9 percent tax credits under the LIHTC program, with 55 percent of its units restricted for affordable housing.
Day Pitney Partner Craig Gianetti and Associate Megan Bedell, who are based in the firm’s Parsippany office, led the team representing Broad Hill Partners. In addition to the tax credit equity, the developer received private construction financing and a Freddie Mac Permanent DUS loan.
Located across the street from City Hall, the development also calls for about 9,000 square feet of commercial space. A resolution adopted by the city council last year placed the project cost at about $23.4 million.
In a news release, Day Pitney said the transaction marked the third LIHTC deal closed by its attorneys in as many weeks. At the end of August, a team led by Gianetti represented Omni America LLC in connection with its acquisition and financing of the Garden Spires and Spruce Spires public housing complexes in Newark, which included a LIHTC allocation of about $49 million from the New Jersey Housing and Mortgage Finance Agency, among other financing sources.
The HMFA has also awarded the project roughly $49 million under the LIHTC, along with some $75 million in financing from the agency’s Conduit Bond program. Omni America has also been approved for a $43 million tax credit under state Economic Redevelopment and Growth program.
The Garden Spires and Spruce Spires will include more than 650 rehabilitated apartments for families. Combined with the City Hall Apartments project, the deals involved more than 700 apartments and over $200 million dollars in financing.