Forest Hill House at 505 Mount Prospect Ave. in Newark — Courtesy: Tredway
By Joshua Burd
An investment group has closed on its purchase of a 100-unit, age-restricted apartment tower in Newark with plans to begin a $20 million overhaul of the affordable housing property.
The buyers, Tredway and LIHC Investment Group, paid $17.3 million for the property at 505 Mount Prospect Ave. and said the renovations would begin immediately. To that end, the new owners will replace all windows and air conditioning units, renovate kitchens and bathrooms and install Energy Star appliances in every apartment at what’s known as Forest Hill House, while completing accessibility upgrades and common area improvements.
The developers have also committed to extending the federal income restrictions governing the 10-story building for another 30 years, ensuring it remains available to serve those with incomes less than 60 percent of the area median income.
“We are excited to embark on this ambitious redevelopment which will protect and improve homes at Forest Hill House for lower-income seniors, while keeping affordability intact,” said Will Blodgett, CEO and founder of Tredway. “Not only does this project allow for the preservation of an important source of affordable housing for the city of Newark, (but) it also provides an opportunity for seniors to live their lives and age independently in a home they can be proud of.”
Apartment renovations will include new cabinets, countertops, tiling, tubs, fixtures and flooring, according to a news release. The developers, meantime, will equip the property’s common areas of with free community-wide WiFi, upgrade the security system and refurbish the building’s patio with new furniture and landscaping.
Additionally, renters will benefit from new health and wellness amenities such as an on-site doctor’s office to accommodate house calls, an on-site nurses’ station and exam room, a beauty salon and barbershop and a new age-appropriate fitness and mobility room, the news release said. Residents will also receive transportation to the grocery store through Northward Senior Transportation, while ownership will implement additional services based on resident feedback in cooperation with Rainbow Housing Assistance Corporation.
“There is a vital need for affordable, high-quality homes for seniors across New Jersey and we are proud to provide state-of-the art housing solutions that take into account the specific needs of older adults,” said Andrew Gendron, a principal of LIHC Investment Group. “The rehabilitation of the property, along with new amenities and comprehensive services for residents, underscores our commitment to helping vulnerable seniors access the types of homes and support they need to live comfortably and with dignity.”
Other upgrades will include a roof replacement, a new emergency generator, conversion to LED lighting and insulation, boiler and ventilation upgrades across the complex, all to ensure that the property is maximized for energy efficiency, the buyers said. In tandem with the nonprofit Mt. Prospect Partnership, Tredway and LIHC will contribute funds toward the creation of sidewalk crossings and the installation of new signage and wayfinding, while also taking steps to enhance the neighborhood’s historic tree canopy.
Blodgett added that such a project “requires public-private collaboration” and went on to thank the U.S. Department of Housing and Urban Development, the New Jersey Housing and Mortgage Finance Agency, the New Jersey Economic Development Authority and the city of Newark, as well as Mayor Ras Baraka and Council Member Anibal Ramos Jr. The joint venture is financing the project with a federally insured permanent loan from Rockport Mortgage Corp. through HMFA’s conduit bond issuance, 4 percent Low-Income Housing Tax Credit equity provided by Regions Affordable Housing and Bank of New York Mellon, Aspire tax credits from the EDA and owner equity.
Affordable Housing Institute Inc. is the not-for-profit partner, the news release said. SHP Management is the property manager, while ETC Cos. and Inglese Architecture + Engineering are the general contractor and architect, respectively.
The news comes two months after a team that included Tredway and LIHC announced the redevelopment of another elderly designated apartment complex, Riverview Towers in Camden. The project will also preserve housing for seniors with limited or fixed incomes, citing it as a priority in a state that currently lacks as many as 300,000 affordable homes.
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