Section 8 Housing Complex Trades in Newark
SVN Affordable says it targeted "a specific type of buyer" and structured the transaction with a creative capital stack at market pricing that was compelling for the seller.
NEWARK, NJ—SVN Affordable/Levental Realty arranged the sale of St. Mary’s Villa, an age-restricted Section 8 housing project in Newark. SVN Affordable acted as exclusive listing broker and was responsible for valuing, marketing and negotiating the transaction on behalf of the Seller.
St. Mary’s Villa is a 360-unit age restricted property with a Project-Based Section 8 HAP Contract covering 100% of the units. The project is currently under a 20-year, Option 3b HAP Renewal Contract, expiring in 2024. The property underwent full mark-to-market restructuring in 2004 and is encumbered by an M2M Use Agreement through 2034. Energy efficient upgrades are planned for the property including a new roof and solar panel installation, among others.
“There were a few regulatory challenges that made this deal particularly difficult for most investors to pursue,” says Gene Levental, managing director, SVN Affordable. “We needed to target a specific type of buyer and structure a transaction with a creative capital stack that resulted in a viable deal for a buyer, but at market pricing that was compelling for the seller to transact.”
SVN Affordable senior advisor Jamie Renzenbrink led the transaction on behalf of the firm.