Jan. 31, 2024 – Camden, NJ –HVPG will be fully renovating the 321-unit affordable housing development to provide better quality housing to residents
Hudson Valley Property Group (HVPG), a leading, national affordable housing preservation company, today announced the acquisition of Northgate Apartments, a 321-unit, 21-story family affordable housing building in Camden, New Jersey. The property was originally built in 1963 and is located at 433 North 7th Street in Camden.
“We are delighted to extend our partnership with the City of Camden, the US Department of Housing and Urban Development (HUD), the New Jersey Economic Development Authority (NJEDA), the Camden County Improvement Authority (CCIA), and the New Jersey Housing and Mortgage Finance Agency (NJHMFA) to enhance the affordability and overall quality of housing in Camden,” said Jason Bordainick, co-founder and managing partner of Hudson Valley Property Group. “HVPG remains committed to transforming communities like Northgate into safe, modern homes and supportive environments for families, and we look forward to showcasing the positive impact our investments and capable team can have on residents and the broader community.”
The acquisition and property rehabilitation of Northgate is financed with a mix of federal low-income housing tax credits (LIHTC) funded by Enterprise, Aspire NJ state tax credits, and a HUD FHA 221d4 loan originated by PGIM). This endeavor represents one of the first affordable housing preservation projects to leverage the new Aspire tax credit program administered by NJEDA (New Jersey Economic Development Authority), which was established under law as part of the Economic Recovery Act of 2020 and provides tax credits to incentivize strategic real estate projects in New Jersey. The City of Camden also supported the project with a long-term PILOT Agreement which will be instrumental in the property’s future success.
“We look forward to working with the new owners of Northgate One, as Hudson Valley Property Group acquires the apartment building adjacent to the Camden entrance to the Ben Franklin Bridge,” said Mayor Victor G. Carstarphen. “We believe this property will see significant improvements under the ownership and care of a responsible developer in Hudson Valley Property Group, which brings a track record of providing high-quality affordable housing for their tenants. My administration is excited about the prospects of positive change this project brings, and the potential for a renovated Northgate One to help transform the surrounding community for the better. This is a big step towards improving the quality of life citywide and yet another a long-term investment in Camden’s revitalization.”
The project received support from various partners, including the Camden County Improvement Authority (CCIA) and New Jersey Housing and Mortgage Finance Agency (NJHMFA) providing financing support, The Metro Company which acted as the tax credit consultant and Citizens Bank as the construction lender. Additionally, BlueHub Capital served as the Aspire lender.
“The sale and renovation of this building will be a significant enhancement to the city of Camden and the residents that live in Northgate,” Commissioner Director Louis Cappelli said. “This property has experienced significant challenges over recent decades, and we are extremely encouraged that it will now be managed by a proven, respected owner-operator that has already done great work in the city at Community Meadows and is committed to improving the quality of life of our residents.”
To ensure the long-term affordability of the property, 96.5% of units are subject to a new 20-year project-based Section 8 HAP contract, which ensures units covered by this subsidy pay no more than 30% of their household income towards rent. The property will also be subject to LIHTC income restrictions through a thirty-year compliance period, and tenants must qualify at 60% of Area Median Income (AMI) to reside at the property. The new combined PILOT Agreement, HUD HAP contract and LIHTC Use Agreement ensure affordability for the property for decades to come, and no current tenants will be displaced as a result of the preservation and rehabilitation process.
The planned transformative revitalization to Northgate will commence shortly after the acquisition closes and take place over a period of approximately two years. The upgrades will include a reimagination of the building’s façade, which will preserve the essence of the mid-century era when the former luxury apartment building was constructed. The scheduled upgrades will be holistic including a complete building revitalization with site infrastructure upgrades, mechanical system replacements, and a number of in-unit bathroom, kitchen and apartment safety improvements, creating a market-rate aesthetic and ensuring adherence to HVPG’s community standards.
The renovation also includes the creation of fully accessible dwelling units, and site improvements to create a fully accessible site. As part of HVPG’s ongoing efforts to improve and maintain its properties for the residents they serve, the firm has also implemented a formal Community Enhancement Program at the property to create a vibrant, responsible, and safe community for residents. The enhancement program includes a site-specific emergency plan, active collaboration with local police departments and an enhanced, high-definition monitoring system providing sitewide security coverage, all with the goal of modernizing the property and improving residents’ quality of life.
Transformative preservation of aging affordable housing projects like Northgate requires complex layers of agency and municipality approvals and creative financing structures, something Hudson Valley Property Group has a strong track record with. The transformation takes substantial time and resources to structure and execute and requires a true partnership with the entire Camden and New Jersey community, including the residents that call Northgate home. The acquisition of Northgate follows Hudson Valley Property Group’s previous 2022 completion of an $85 million acquisition and renovation project at the Community Meadows apartments, a 391-unit, 21.5-acre complex located in Camden’s Morgan Village in October 2022.
