Grace West Manor at 301 Irvine Turner Blvd. in Newark — Courtesy: Jonathan Rose Cos.
By Joshua Burd
Jonathan Rose Cos. has secured more than $90 million in financing and equity to rehabilitate and enhance a 429-unit affordable housing complex in Newark.
The developer last week announced the funding package for the project at Grace West Manor, a federally subsidized property at 301 Irvine Turner Blvd. The package includes about $64 million in permanent financing from Key Bank under the federal government’s FHA 223(f) program and $28 million in Low Income Housing Tax Credit equity from Bank of America.
Now underway, the project is slated for completion in 2020 and will include a $17.5 million investment to upgrade community spaces, upgrade units, enhance the safety and security of residents and reduce the property’s carbon impact, according to a news release. Common area improvements will include new furniture and finishes, a new fitness room, enhanced community and game rooms, lounge, computer workstation and a medical exam room.
Jonathan Rose also plans to improve the landscaping, irrigation and outdoor areas, the news release said. The developer will use additional funds to add social and recreational programs such as Zumba, art and exercise classes, children’s programming, a community choir, holiday parties and Black and Hispanic History month activities.
Grace West benefits from a long-term project-based Section 8 Housing Assistance Payment contract, allowing 100 percent of its units to be reserved for households earning below 50 percent of the area median income, the news release said. The property sits at the southern edge of Newark’s central business district and provides residents with access to transit, services and downtown amenities.
Jonathan Rose, a New York-based developer and investor, acquired the property five years ago with support from Citi Community Capital. Ownership has made some $4 million in improvements since then, while seeking tax credit and bond financing that would allow for a more comprehensive renovation.
The new funding will also enable Jonathan Rose to make unit upgrades such as new kitchen cabinets and counters, new Energy Star refrigerators and ranges, LED lighting and low-flow faucets, the news release said. New bathroom vanities and sink tops, low-flow shower heads, dual flush toilets, mirrors, tiling and paint will also be included as needed.
Meantime, the company will expand its Community of Opportunities programming at Grace West, including educational and awareness programs such as senior safety, fraud prevention, disaster preparation and health and nutrition programs.
