Villa Victoria Apartments – 133 7th Avenue, Newark, NJ
Hudson Valley Property Group
Total Development Cost – $47,900,000
Construction, Bridge and Permanent Financing Closed December 2018
Audubon Enterprises was engaged by Hudson Valley Property Group (HVPG) to serve as the financing and development consultant for the substantial rehabilitation of a 193-unit affordable housing community in downtown Newark, New Jersey that was in need of significant modernization and repair. This property is part of a larger portfolio consisting of nine properties and 1,200+ units for which Audubon was engaged to assist. Villa Victoria includes a six-story mid-rise building with 103 units reserved for senior citizens and nine low-rise buildings that contain 90 general occupancy affordable housing units. All of the units are covered by a project-based Section 8 Housing Assistance Payment (HAP) contract.
Audubon led the financial structuring which includes an FHA insured 223(f) mortgage serviced by Walker and Dunlop, tax- exempt bonds issued by New Jersey Housing and Mortgage Finance Agency underwritten by Stifel Financial Corporation, a bridge loan provided by Cedar Rapids Bank & Trust and Low Income Housing Tax Credits (LIHTC) syndicated by R4 Capital.
Audubon structured, negotiated and secured approval for a Payment in Lieu of Taxes (PILOT) agreement with the City of Newark which was subsequently approved to be assumed by the new borrower / purchaser entity and extended beyond its initial expiration date to accommodate the financing structure. Audubon also led the mark-up-to-market process for the existing HAP contract, and ensured that the contract was approved to be assigned to the purchasing entity.
The scope of work at the property includes site work on the retaining walls, improved landscaping, parking lot paving work and site lighting. Unit kitchens are being upgraded to include ceramic backsplashes, new sinks, and new cabinets. Bathrooms are being upgraded to include new low-flow fixtures and new medicine cabinets. New unit entry doors, balcony doors, and windows will be installed. Ten units will be retrofitted to be accessible to those with mobility impairment including two units for those with hearing and visual impairment. Common area improvements include a new kitchen in the community room, new accessibility features in the restroom, replacement of exterior windows, a trash compactor, repainting, and modernizing the elevator. The renovation scope also includes upgrading the mechanical, electrical and plumbing systems.