Colliers International has been busy this week, closing the sale of a Section 8 senior apartment community in New Jersey and also a trio of HUD mortgages for three market-rate senior co-ops in the Midwest. First, to the sale. Colliers represented Squiretown Properties LLC in its disposition of a 405-unit community in this Newark suburb of East Orange. Built in 1980, but with no major renovations since then, the community’s affordability status was set to expire in 10 years. However, a partnership between Community Preservation Partners and L+M Development Partners has extended that to 30-years with their acquisition of the community. The purchase price totaled $94 million, or $232,100 per unit, and those new owners plan to invest more than $29 million in capital improvements, funded through a PILOT program obtained through the city.
In a separate transaction, the Minneapolis office of Colliers Mortgage then arranged three HUD loans totaling $18.8 million that reduced the interest rates and resulted in substantial annual savings for three Village Cooperative communities in Iowa and Minnesota. Built from 2007 to 2013 by Real Estate Equities Development, LLC, these three market-rate communities total 162 units. The two Iowa communities both received 40-year terms and 40-year amortization, while the Minnesota property has a 39.17-year term and amortization.
