Kline Enterprises has sold a 1,009-unit portfolio of seven affordable housing properties in northern New Jersey to a joint venture between Hudson Valley Property Group, Red Stone Cos., and Wheelock Street Capital, for $180 million.
The portfolio includes senior and family affordable assets in Paterson, Orange, East Orange, Metuchen, Old Bridge, Hazlet, and East Windsor. The assets are subsidized by long-term project-based Sec. 8 contracts but are complicated by regulatory restrictions, which, according to primary broker SVN Affordable, made the portfolio project “uniquely challenging to value and finance.”
The portfolio’s sale will finance the properties’ upkeep and renovation and ensure that they remain affordable for the next several years.
Community Realty Management (CRM) will succeed First National Properties as the portfolio’s third-party property manager. CRM will retain the majority of the existing on-site staff members, who have received outstanding-achievement awards for their commitment to their properties and residents.
SVN Affordable | Levental Realty brokered the transaction on Kline’s behalf, and Pryor Cashman served as seller’s counsel. The purchaser’s financing was provided by Walker & Dunlop and Fannie Mae. Goodwin Procter, Nixon Peabody, and Berman Indictor served as purchaser’s counsel.