WinnDevelopment has acquired 153 units of affordable housing as the first step in a planned rehabilitation project in Atlantic City, N.J.
Sencit Liberty is a scattered-site complex of income-restricted family housing in three historic properties previously adapted for residential use:
· Liberty, 67 apartments in the former Liberty Hotel originally built in 1924; · Schoolhouse, 66 apartments in the former Illinois Avenue School originally built in 1906; and
· Disston, 20 apartments in the former Northside YMCA originally built in 1927.
“With the community’s support, we are happy to take a big step toward what we hope will be a brighter future for the neighborhood,” said WinnDevelopment senior vice president Brett Meringoff, who led the acquisition team. “We believe the successful rehabilitation of these three properties would not only improve the quality of life for the residents, but also positively impact the entire community and signal major investment in this area of Atlantic City.”
Company leaders said they are committed to keeping Sencit Liberty affordable for the next 30 years while upgrading the complex as part of a substantial occupied rehabilitation.
WinnDevelopment was able to structure the equity investment through its own Qualified Opportunity Fund, according to Meringoff.
The $17.3 million purchase was financed by BlueHub Capital, formerly known as Boston Community Capital, using Capital Magnet Funds from the Department of Treasury, and by Citi Community Capital, using a combination of Affordable Housing Catalyst funds and acquisition bridge debt financing. The broker was Dane PCG.
The city of Atlantic City, including the City Council and the Planning & Development Department, the New Jersey Housing and Mortgage Finance Agency, the Department of Housing and Urban Development, and the Casino Reinvestment Development Authority provided planning and financial support for the acquisition. WinnDevelopment hopes to assemble all the financing needed for the rehabilitation project by later this summer.
WinnCompanies owns more than 100 multifamily housing properties in 11 states and Washington, D.C., totaling more than 13,000 apartments.