Standard Companies, an apartment and affordable housing real estate investment firm, has been on an acquisition roll lately in the low-income senior apartments sector. The company followed up its acquisition of a large senior apartment building in Chesapeake, Virginia with the purchase of another community located up the coast in Atlantic City, New Jersey.
Built in 1982, the community’s 169 units are supported by Section 8 Housing Assisted Payment (HAP) contracts. Standard paid roughly $28 million, or $165,700 per unit, for the property and plans to spend an additional $10 million to renovate it. The project will update the residents’ units, upgrade the common areas and amenity spaces, and modernize the physical plant.
Standard Communities completed this transaction in private-public partnership with HUD and the New Jersey Housing and Mortgage Finance Agency (NJHMFA). They financed the acquisition and renovation costs with Low Income Housing Tax Credits (LIHTC) arranged in partnership with PNC Bank and additional financing provided by Citibank. The affordability of all 169 units will also be extended for another 30 years with the deal.
Earlier this month, Standard spent over $60 million to buy a 597-unit mixed-income senior apartment community in Chesapeake, Virginia. In that deal as well, Standard plans to spend up to $7.5 million on renovations. Northmarq represented Standard in that deal.
