Standard Communities has made its first acquisition in New Jersey with the purchase of Baltic Plaza Apartments, a 169-unit affordable senior community in Atlantic City. The total capitalization of the transaction is approximately $38 million.
Built in 1982, Baltic Plaza’s units are supported by a project-based Section 8 Housing Assistance Payment (HAP) contract.
Standard Communities completed this transaction in partnership with the Department of Housing and Urban Development and the New Jersey Housing and Mortgage Finance Agency (NJHMFA). The transaction was financed with low-income housing tax credits (LIHTCs) arranged in partnership with PNC Bank, with additional financing provided by Citi Community Capital.
With an approximately $10 million renovation planned, Standard will provide residents with updated units, upgraded common area and amenity spaces, and modernized building systems.
“This public-private partnership will extend the affordability of all 169 units for the next 30 years and facilitate a transformative renovation that will dramatically enhance the resident experience,” said Melanie R. Walter, executive director of NJHMFA.
The renovation also includes significant energy and water conservation measures, including low-emissivity windows, LED lighting fixtures, low-flow plumbing fixtures, Energy Star-rated refrigerators and air-conditioning units, and smart thermostats in all apartments.
These conservation measures are expected to reduce energy consumption by 27% and water usage by 22%, collectively saving Baltic Plaza residents over $31,000 per year in utility bills. The amount of electricity and natural gas saved by these energy-efficiency measures will reduce the building’s carbon footprint by 315 metric tons of carbon dioxide per year—the equivalent of approximately 800,000 miles driven by a typical passenger car.
Standard Communities also reports that it will provide Baltic Plaza residents with support and resources designed to enrich their lives, including a resident service coordinator at the property to design and implement a comprehensive suite of services and community programs. These include access to wellness programs and special events. These resident and community services will be based in a renovated amenity space and provided at no cost to residents.
“Standard strives to connect our capital with our values,” said Scott Alter, principal and co-founder of Standard Communities. “This public-private partnership is a major investment in Atlantic City that will leverage local resources to serve our residents, and renovations on the property will provide significant utility savings for the residents through our sustainability initiatives at Baltic Plaza.”
Based in New York and Los Angeles, Standard Cos. has a portfolio of over 14,700 apartment units, including approximately 11,000 affordable units, and has completed more than $2.6 billion of affordable housing acquisitions and rehabilitations nationwide. The firm’s affordable housing division is Standard Communities.