Acquisitions—Newark, New Jersey
1 Court Street
In March 2013, the Rose New Jersey Green Affordable Housing Preservation Fund acquired 1 Court Street, a 221-unit affordable property in Newark, New Jersey for senior citizens. The project is the third acquisition for the New Jersey Fund, a collaboration between Goldman Sachs and Jonathan Rose Companies that seeks to acquire and preserve existing, CRA-eligible affordable housing in transit-oriented locations throughout New Jersey.
The Property is strategically located adjacent to the Fund's other Newark asset, Nevada Street Apartments. Broad Street, a major retail corridor in downtown Newark, runs along the east side of the Property, providing convenient access to multiple bus lines.
2 Nevada Street benefits from an existing HUD Section 236 mortgage and a Rental Assistance Payment (RAP) subsidy covering 60% of units. The Fund has notified HUD of its interest in enrolling the project in HUD's Rental Assistance Demonstration (RAD) program to preserve affordability beyond the expiration date of the existing RAP agreement.
Ownership will conduct a moderate capital improvement plan during the first year of acquisition to improve common areas and make miscellaneous apartment repairs. A larger $6 million capital plan will be undertaken pending the project's successful refinancing and subsidy conversion under the RAD program. Renovations will focus on base building work to improve energy efficiency, modernize elevators, improve indoor quality, and replace aging unit fixtures. Renovations will be completed with tenants in-place.
Preservation of a 221-unit affordable, transit-oriented senior property
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