WinnCompanies has completed the acquisition and rehabilitation of a 156-unit affordable housing community in Bridgeton, N.J.
The $34 million project ensures that the Ivy Square Apartments remains affordable for 30 years and modernizes the apartments for residents.
“When we acquired this site in early 2017, we promised to maintain this housing’s affordability for at least three more decades and to significantly improve the quality of life for the families who live here,” said Brett Meringoff, senior vice president at WinnDevelopment. “Today, we can say we have kept this promise, transforming the property into Ivy Square Apartments—high-quality, modern apartment housing, with a multitude of supportive services and a brand new community building. This once-neglected property is now a source of pride for residents and an asset to the community.”
Constructed between 1966 and 1969, the property formerly known as Bridgeton Villas features 28 one-, 92 two-, and 36 three-bedroom units.
The two-phase, $13.3 renovation included complete kitchen and bathroom upgrades to every apartment, new roofs on all eight residential buildings, new HVAC systems, and the construction of a community building that includes a fitness room, a community room, and management offices.
The development team also made repairs to the parking lot and sidewalks and added a new security camera network and playground.
In conjunction with the physical rehabilitation, five units at Ivy Square were made handicapped accessible, and 10 units have been set aside as special-needs housing for residents who have experienced homelessness. WinnResidential, the property management arm of WinnCompanies, is partnering with Gateway Community Action Partnership to deliver supportive services for residents of these units.
WinnCompanies assembled multiple funding sources to finance the project. In the first phase, the New Jersey Housing and Mortgage Finance Agency (NJHMFA) issued 4% low-income housing tax credits (LIHTCs), which generated $6.4 million of equity from Aegon Real Assets US, provided $1 million from the NJHMFA Special Needs Housing Trust, and issued construction and permanent tax-exempt bond financing that was directly purchased by Citi Community Capital. Citi provided a subordinate loan from its Multifamily Catalyst loan program, a competitive one-time funding source to spur the creation and preservation of affordable rental housing.
For the second phase, funding sources included NJHMFA long-term taxable bond permanent financing, a tax credit equity investment from AEGON for the NJHMFA-awarded 9% LIHTCs, and a construction loan and subordinate mortgage proceeds from Citi.
The city of Bridgeton provided two long-term real estate tax abatements, one for each respective phase. The Department of Housing and Urban Development (HUD) supported the project through project-based Sec. 8 Housing Assistance Program contracts for 154 units. WinnDevelopment contributed deferred development fees, capital, and net operating income.
Designed to meet Enterprise Green Communities standards, the project significantly improved the community’s environmental sustainability. All attics received air sealing and insulation. High-efficiency LED lighting was installed in apartments and common areas. ENERGY Star appliances, low-flow WaterSense plumbing fixtures, low-VOC finishes, ENERGY Star exhaust fans, and high-efficiency heating and hot water systems were installed in the apartments and the community building.
Weatherization assistance and oversight was provided by Gateway CAP. MaGrann Associates performed HERS (Home Energy Rating System) inspections and performance testing upon completion of the development to certify the energy efficiency of the rehabilitation efforts.
DiMarco Constructors of Rochester, N.Y., served as the general contractor, and The Architectural Team of Chelsea, Mass., served as the project architect.
The development has had a substantial local impact, creating 178 jobs. Of the new hires for this project, 51.9% were filled by local Bridgeton residents. In addition, of the over 64,000 labor hours committed to this project, 53% were completed by minorities and 11% by women.
