Jonathan Rose Arranges $92M Financing for Grace West Manor Redevelopment

NEWARK, NJ—Jonathan Rose Companies, a developer and investor in sustainable, affordable and mixed-income multi-family real estate, has arranged a new Low Income Housing Tax Credit (LIHTC) Partnership that will use approximately $64 million in FHA 223(f) permanent financing from Key Bank and $28 million in LIHTC equity from Bank of America to revitalize Grace West Manor, a 429-unit, affordable Section 8 property in Newark, NJ.

The project, which will begin immediately and be completed in 2020, will include $17.5 million in capital improvements to upgrade community spaces, upgrade units, enhance the safety and security of residents, and reduce the property’s carbon impact. Common area improvements will include new furniture and finishes, a new fitness room, enhanced community and game rooms, lounge, computer workstation and a medical exam room.   The landscaping, irrigation and outdoor areas will also be improved.

Unit upgrades will include new kitchen cabinets and counters, new Energy Star refrigerators and ranges, LED lighting and low flow faucets. New bathroom vanities and sink tops, low flow shower heads, dual flush toilets, mirrors, tiling and paint will also be included as needed.

Additional funds will be used to further expand the property’s social and recreational programs such as Zumba, art and exercise classes, senior wellness and game days, children’s programming, a community choir, holiday parties and Black and Hispanic History month activities. The new financing will also enhance Jonathan Rose Companies’ Community of Opportunities programming, including educational and awareness programs such as senior safety, fraud prevention, disaster preparation, breast cancer, lung cancer and stroke awareness programs, health and vision screenings and nutritional programs.

Grace West benefits from a long-term project-based Section 8 Housing Assistance Payment (HAP) contract with 100% of units reserved for households earning below 50% of AMI.

Located at the southern edge of Newark’s central business district, Grace West Manor provides easy access to transit, services, and downtown amenities. Several bus lines serve the property. Newark City Hall, Newark Symphony Hall, Lincoln Park, the Prudential Center and Broad Street (a major retail corridor in downtown Newark) are within walking distance, and the city’s main train station, Penn Station, is just over a mile north of the property providing commuter and Amtrak train service.

Since acquiring the property, supported by Citi Community Capital five years ago, Jonathan Rose Companies actively sought tax credit and bond financing that would allow for significant investment in much needed improvements to the property. During this interim period, ownership invested additional equity, secured Weatherization Assistance Program (WAP) funding, and released building reserves so that critical capital improvements of approximately $4 million could be made while seeking this more significant funding for a deeper renovation.