8-20-21

F inancial D igest I nvestment /M ultifamily F inancing

M id A tlantic Real Estate Journal — August 20 - September 16, 2021 — 3A

www.marej.com

The Lincoln Park Towers acquisition and renovation is the final investment acquired $1B invested in affordable housing by HPVF’s First Private Equity Real Estate Preservation Fund

EWARK, NJ — Hud- son Valley Prop- erty Group, LLC (HVPG) has closed on the acquisition of Lincoln Park Towers, the final investment for HVPG’s first private equity real estate fund, Hudson Val- ley Preservation Fund, LLC (HVPF or the Fund). The $60 million of capital com - mitments raised paired with $120 million of co-investment equity has been leveraged to invest over $1B in projects, scaling their model of preserv- ing the financial and physical stability of affordable housing. “HVPG has developed a con- sistent process for revitalizing existing housing to preserve affordability, improve quality, and increase efficiencies,” said Jason Bordainick , CEO and co-founder. “Leveraging N

investors, banks, family of- fices, and individuals. The Fund made 13 investments in over 25 properties, pre- serving over 4,000 units of affordable housing for nearly 15,000 residents inMaryland, New Jersey, New York, and Pennsylvania. The Fund is Community Reinvestment Act-eligible and is evalu- ated using HVPG’s unique environmental, social, and corporate governance (“ESG”) reporting framework. Lincoln Park Towers, the Fund’s final acquisition, is illustrative of the proper- ties across the portfolio and HVPG’s mission. The 17-story historic building consists of 80 units of affordable, senior housing. In addition to pre- serving the long-term afford- ability of the property, the

redevelopment will include immediate renovations to individual apartment units; energy efficiency updates; safety upgrades; and new com- munity amenities such as a fitness room, lending library, and media center. Capital re- pairs include a new roof and repairs to windows, façade, and elevators. The building will also be set up with Wi-Fi and high-speed internet pro- vided at no cost to residents. This project is supported by the City of Newark through a new, 30-year Payment in Lieu of Taxes (“PILOT”) Agreement, and affordability is secured by a new 20-year project-based Housing As- sistance Payment Contract issued by the US Depart - ment of Housing and Urban Development. MAREJ

Lincoln Park Towers

private equity allows us to sig- nificantly expand our reach, earning a reliable return for investors while serving more

residents and communities.” HVPF was oversubscribed in March 2019, with com- mitments from institutional

Progress Capital arranges $53 Million in refinancing for newest luxury gated complex in East Orange, NewJersey

EAST ORANGE, NJ — Brad Domenico of Progress Capital secured $53 mil-

lion in refi- nancing for Ai ra j and I b r a h i m Ha s an , o f Blackstone 360 , owner/ developer of LOTUS 315 – an 8-story,

Brad Domenico

Class-A luxury mixed-use building located at 315 South Harrison St. Arbor Commercial Mort- gage provided 3-years inter- est only financing on a non- recourse basis. The property was bui lt in 2019 by Newark-based real estate development firm Blackstone 360 (B360), who owns and operates the gated complex. LOTUS 315 features a sleek, ship-like structured building with 180 residential units coupled with 33,151 s/f of ground-floor commercial space. Its apartment interiors are outfitted with strand- woven bamboo floors, stainless steel appliances, Italian-style

LOTUS 315

kitchens and an in-unit wash- er/dryer. Additional luxury essentials include gated entry, underground parking, 24-hour doorman and gorgeous outdoor garden with party lounge, private garden terraces and a state-of-the-art gym. The residence also provides shuttle service to Newark Penn Sta - tion, giving commuter tenants a hassle-free transportation option to the NJ Transit line with service to NYC.

LOTUS 315 is situated along the bustling corridor of South Harrison St. at the cross- section of East Orange and South Orange, for easy access to Seton Hall University and the East Orange VA Hospi- tal. Major highways includ- ing I-280 and Garden State Parkway are also within close proximity. B360’s business model is built on locating prime real estate within overlooked, ur-

ban markets and transform- ing these areas into high-end multi-family rentals. The firm’s heritage as a general contracting firm allows them to utilize a vertically inte- grated, 360-degree model of development, design and con- struction in-house, with the capacity to deliver tremendous stabilized value compared to cost. Since 1990, Progress Capital has closed over $40 Billion in

commercial loans and $150 Million in directly funded bridge loans. As a commercial real estate advisory firm, we can advise you on any real estate investment you are considering and provide the financing advice you need to manage through the com- mercial real estate acquisition and/or financing process. We consistently get our clients to the closing table… plain and simple! MAREJ

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