West New York Apartment Tower Secures $140M Refi Loan
Real Estate In-Depth | November 2, 2020
WEST NEW YORK, NJ—LIHC Investment Group of Portland, ME and Rockport Mortgage Corporation Gloucester, MA announced today the closing of a $140-million FHA Section 223(f) refinancing loan for Parkview Towers, a 688-unit property located here.
The development consists of two 24-story buildings and is owned by LIHC, a real estate investment group committed to the preservation of affordable housing, which has offices in New York City.
All households at Parkview Towers are covered by a Project-Based Section 8 contract that limits how much tenants contribute toward rent to 30% of adjusted gross income. As part of the loan refinancing, LIHC has agreed to enter into a new 20-year Mark-up-to-Market Section 8 Contract, which will ensure the property remains affordable to very low-and low-income families for another 39 years, through 2059.
“Parkview Towers is the largest and likely the most important affordable housing resource in West New York,” noted John Dromey, senior vice president and deputy chief underwriter of Rockport Mortgage Corp. “Parkview is an exceptional property in a great location. This loan transaction will allow the property to remain an important affordable housing resource long-term.”
“We are pleased to partner with Rockport on this major refinancing effort and to commit Parkview Towers to 39 more years of deep affordability under Section 8,” said Andrew Gendron, principal, LIHC Investment Group. “This year we’ve extended affordability protections for 1,790 units across six properties in New York and New Jersey, providing much-needed peace of mind for vulnerable adults and families, particularly in today’s environment.”
The refinancing also makes it feasible for the owners to undertake a property-wide renovation campaign, in excess of $8.4 million. In-unit upgrades will include new kitchen cabinets with granite countertops, new ranges, refrigerators, and faucets, new bathroom vanities with medicine cabinets, floor tiling and tub surrounds. Modifications will also be made to increase the number of accessible units at the property from 25 to 35. Demand for homes at Parkview remains high, with occupancies averaging more than 98% during the past three years.
“As the first Section 8 housing built in New Jersey, we take great pride in maintaining Parkview Towers as a place that people are proud to call home,” said Lisa D’Alessandro, president of Parkview Management Corp. and daughter of James Canino, the original owner and developer of the property. “Ahead of its time in many ways, Parkview has long stood as a source of high-quality, amenity-rich, subsidized housing, and it’s always meant much more to me than just an investment. I’m pleased to continue my father’s legacy by extending protections for another 39 years so Parkview will continue to serve our tight-knit West New York community.”
Parkview Towers is located on a bluff overlooking the Hudson River with stunning views of the Manhattan skyline. West New York is an established residential community offering Parkview Towers residents an array of services including shopping, restaurants, parks, schools and places of worship.
The property has excellent access to public transportation with the Port Imperial ferry terminal only a 10-minute walk away, providing access to Manhattan in about 20 minutes. The property provides amenities including laundry, on-site parking and a community room for tenants use. Additionally, the property features security guard service, as well as an extensive security camera network.
Recently, Rockport has provided financing for several other LIHC-owned properties, including a $74-million FHA 223(f) multifamily loan for Little Italy Restoration Apartments in New York, NY; a $65-million FHA 223(f) multifamily loan for Renwick Garden Apartments in New York, NY; $42.5-million FHA 223(f) multifamily loan for Malcolm Towers in Fort Lee, NJ; and a $27-million FHA 223(f) multifamily loan for Mansion Apartments in Pine Hill, NJ.