Hudson Valley Property Group is planning a major preservation and rehabilitation of Northgate Apartments at 433 North 7th St. in Camden, with plans calling for site infrastructure upgrades, mechanical system replacements and many in-unit bathroom, kitchen and apartment safety improvements. — Renderings: Hudson Valley Property Group
By Joshua Burd
PGIM Real Estate has provided nearly $41 million in financing to a developer that plans to revitalize a 321-unit affordable housing property in Camden, the lender announced.
The borrower, Hudson Valley Property Group, will use the funds in connection with the project at 433 North 7th St., the site of what’s known as Northgate 1 Apartments. The Manhattan-based firm announced in January that it closed on its purchase of the property, with plans to start a sweeping upgrade soon thereafter that would enhance the building’s exterior, common spaces and apartments.
PGIM, the global asset management business of Prudential Financial Inc., provided the $40.7 million Federal Housing Administration loan with a fixed rate. It noted that the project has also secured an award under the New Jersey Economic Development Authority’s Aspire program, which will provide some $41.5 million in tax credit equity that HVPG will use to pay for a portion of the renovation costs.
The lender added that 310 units at Northgate 1 Apartments are federally subsidized with a new 20-year contract. The rehabilitation plans include substantial in-unit and common area upgrades, as well as a redesign of the building’s exterior, improved accessibility and significant systems replacements.
“As one of the first FHA deals to utilize New Jersey’s Aspire tax credit program, PGIM Real Estate is proud to serve as a leader in delivering critical and innovative financial tools to the affordable housing sector,” said Alex Viorst, who led the deal team on PGIM Real Estate’s behalf. “We are pleased to support HVPG’s acquisition and substantial rehab of Northgate 1 and look forward to continuing our relationship with HVPG to help transform affordable housing developments that better serve both residents and their communities.”
Investor acquires 321-unit affordable housing tower in Camden, eyes $104 million rehab plan
