Verona Senior Citizens Apartments at 100 Hillwood Terrace in Verona — Courtesy: Rockport Mortgage Corp.
By Joshua Burd
The owner of two federally subsidized housing properties has closed on more than $50 million in financing, under a pair of transactions by Rockport Mortgage Corp.
The Boston-based multifamily lender announced the closing of two loans for LIHC Investment Group, one of the nation’s largest real estate firms focused on preserving affordable housing. The financing is tied to Verona Senior Citizens Apartments in Verona and Mansion Apartments in Pine Hill, which span 160 and 360 units, respectively, and will both have extended Section 8 contracts in connection with the loans.
Rockport is providing loans of $24 million and $27 million, respectively.
“We are proud to work with Rockport and HUD to finalize this strategic and important financing for both properties,” said Andrew Gendron, a principal with LIHC Investment Group. “This transaction places affordable homes at Verona Senior Citizens Apartments and Mansion Apartments on secure footing for years to come, ensuring they will continue to serve existing and future residents as well as their surrounding communities.”
Sitting on five acres and built in 1981, Verona Senior Citizens Apartments is an age-restricted, subsidized development with studio and one-bedroom units within one midrise building, Rockport said. Loan proceeds will be used to refinance existing debt, upgrade units and update the building, with work such as kitchen and bathroom renovations in all units and new vinyl flooring in half of the units not previously upgraded.
The building will also be updated with new main entry doors, a new emergency generator, a new energy recovery ventilation unit and an upgraded security camera system, according to a news release. Amenities include a part-time resident services coordinator for health services and social activities, along with enhanced security, exterior seating areas with tables and benches, a large community room, library and game room.
Mansion Apartments, also a subsidized Section 8 development, comprises one and two-bedroom apartment within 19 two-story multifamily buildings and one two-story management office and community room, the news release said. Less than 20 miles from Philadelphia, the buildings were constructed in 1973 on some 25 acres.
The development offers amenities including two outdoor pools, a playground, community room and management office as well as 423 open, uncovered off-street parking spaces.
LIHC Investment Group will use the loan proceeds to finance repairs, building and unit upgrades and fund the replacement reserve account. Building and unit upgrades include renovations to kitchens and baths in all units, the installation of new HVAC in half of the units, new patio doors for the buildings, a new emergency generator, sewage pump lift station and accessibility upgrades.
In connection with the refinancing of both properties, LIHC Investment Group entered into new 20-year project-based Section 8 contracts and agreed to further extend the new contracts by the number of years remaining on the prior Section 8 contracts. That means Verona Senior Citizens Apartments and Mansions Apartments will remain affordable for 31 and 39 years, respectively.
“We’re grateful to once again work with the professionals at LIHC Investment Group,” said Dan Lyons, managing partner of Rockport Mortgage Corp. “Our two organizations share a deep commitment to the preservation of affordable housing across the country. These loans provide the necessary funding to enhance the marketability of the properties and improve the quality of life of the tenants as well as secure the long-term affordability of both properties.”