Feb. 2022 – Millville, NJ – Hudson Valley Property Group (HVPG) announced the acquisition of Delsea Village, a 100-unit family affordable development in Millville. The $14 million transaction includes financing for the preservation and renovation of the property to modernize the building while keeping rents affordable.
HVPG will keep rents affordable to residents while pursuing a new 20-year HUD Project Based Section 8 Contract and low-income housing tax credit (LIHTC) syndication. The initial acquisition was financed through an equity investment from Hudson Valley Preservation Fund II (HVPF II) and bridge debt financing through KeyBank. The next phase of HVPG’s preservation plan will be to secure 4% low-income tax credit/tax exempt bond financing in partnership with the New Jersey Housing and Mortgage Finance Agency and permanent debt also through KeyBank which will ensure affordability for an additional three decades and allow for a $5.1 million renovation of the property. HVPG’s “bridge to tax credit” strategy allows the seller to exit ownership in a more expedited timeline with future plans in place to access publics funding required for more extensive renovations and building modernization, all the while maintaining the long-term affordability of the property and non-displacement of residents.
“Hudson Valley Property Group is excited to bring physical upgrades, continued affordability, and a refreshed community outlook to residents of Delsea Village,” said Jason Bordainick, managing partner and co-founder of Hudson Valley Property Group. “We are grateful to our partners who have supported our work here and throughout the state, preserving New Jersey’s affordable housing stock for the long term.”
Located at 2233 S. 2nd St., the 100-unit property will undergo substantial in-unit and property-wide renovations, drastically enhancing the complexion of the property.
“The project was eligible for immediate resyndication, however finding an experienced developer with a strong relationship with NJMFHA, who also had the capability to close with bridge financing in calendar year 2021 was an integral part of transaction. After a targeted but national marketing effort, HVPG was selected from a group of finalists based on their qualifications and ability to execute in a timely manner,” said Gene Levental, managing director, SVN Affordable.