Omni New York has received a first-of-its-kind financing for the acquisition and rehabilitation of two affordable housing properties in Newark, N.J.

Omni New York's 544-unit Garden Spires Apartments in Newark, N.J., will undergo extensive rehabilitation.
Omni New York's 544-unit Garden Spires Apartments in Newark, N.J., will undergo extensive rehabilitation.

The loan from KeyBank Real Estate Capital and KeyBank Community Development Lending & Investment (CDLI) marks the first made under Fannie Mae’s Healthy Housing Rewards Enhanced Resident Services program.

The financing totaled $98.4 million, with a $59 million Fannie Mae Reduced Occupancy Affordable Rehab (ROAR) loan and a $23.8 million Economic, Redevelopment and Growth (ERG) bridge loan secured by Garden Spires Apartments and a $15.6 million Fannie Mae Affordable Mortgage loan secured by Spruce Spires Apartments.

“Through our relationship with Fannie Mae, KeyBank is able to invest in affordable housing that will have a long-lasting impact on communities by improving the quality of life for residents, families, and surrounding neighborhoods,” said Rob Likes, national manager of the CDLI team. “The rehabilitation of Garden Spires and Spruce Spires Apartments will preserve and improve the quality of 656 affordable housing units in the greater Newark community.”

Built in 1963, Garden Spires Apartments is a 544-unit affordable housing, high-rise apartment complex comprised of two 20-story apartment buildings. The property offers six different floor plans consisting of one-, two-, and three-bedroom units.

Built in 1920, Spruce Spires Apartments is a 112-unit subsidized housing property with all units included in a project-based Sec. 8 Housing Assistance Payment contract. The property also benefits from New Jersey’s PILOT program. The apartment complex is comprised of six five-story buildings.

“At Fannie Mae, we believe that providing resident support services at affordable rental housing properties can improve the health and well-being of the people who call those properties home,” said Bob Simpson, vice president of affordable and green financing at Fannie Mae. “KeyBank has been a great partner for our first Healthy Housing Rewards Enhanced Resident Services loan, and we are thrilled to support developers, like Omni New York, who are committed to ensuring that renters and their families have greater access to health, education, and other community services.”

Introduced in January, Fannie Mae’s Healthy Housing Rewards Enhanced Resident Services program offers incentives to borrowers who provide resident services at their affordable multifamily properties.

Both properties will undergo extensive rehabilitation, including renovating lobby areas, replacing and upgrading building mechanics, modernizing elevators, installing new roofs and doors, improving common areas, replacing boilers, and overhauling and installing new security cameras. The in-unit capital improvements will include installing new floors and windows and replacing kitchen cabinets, appliances, countertops, light fixtures, bathroom vanities, sinks, faucets, bathtubs, and tiles.

In addition, the properties will offer resident services supported in part by Fannie Mae’s Healthy Housing Rewards Enhanced Resident Services initiative. At these properties, residents will have access to a variety of services, including programming for health and wellness, nutrition and healthy food access, workforce development, adult and youth education support, and community engagement.

Dirk Falardeau of Key’s Commercial Mortgage Group and Kyle Kolesar of Key’s CDLI group arranged the financing for both properties.

Omni acquires, rehabilitates, builds, and manages affordable housing throughout the United States. The firm owns and manages more than 13,000 affordable housing units.