Grandview Terrace Apartments

Overview

Size $54.9 Million
Construction Loan & HUD Loan

Summary

KeyBank secured $54.9 million for Hudson Valley Property Group to refinance Grandview Terrace Apartments, a 283-unit affordable multifamily property in Jersey City, New Jersey. Grandview Terrace will target family households with incomes between 60% and 90% of the area median income (“AMI”).

KeyBank Commercial Mortgage Group’s Affordable Housing Team arranged the HUD Section 223(f) program loan, structured with a 35-year fully amortizing term. The subsidy granted by the Jersey City Housing Authority provides assistance to 267 units (94%) via project-based vouchers.

Grandview Terrace was formerly designated as a HUD Section 202 development, which helps expand the supply of affordable housing with supportive services for the elderly. The property was also subject to flexible subsidy loans, pursuant to Section 201. Hudson Valley Property Group has extended the term of the Section 201(p) flexible use agreement to preserve and extend Grandview Terrace’s affordability for decades to come and avoid tenant displacement.

The HUD 223(f) loan was used to refinance a KeyBank Community Development Lending and Investment (CDLI) acquisition/construction loan, which facilitated renovations of approximately $50,000 per unit. This rehabilitation was undertaken to preserve the long-term viability of this valuable affordable housing asset and included unit upgrades to flooring, appliances, and finishes. Common area upgrades include façade repairs, elevator upgrades, new air conditioners, repainting, and providing access control to residents.

Grandview Terrace Apartments are in the Journal Square neighborhood, approximately 5 miles west of Manhattan across the Hudson River. The property is readily accessible by public transportation. The PATH rail system provides service to midtown and downtown Manhattan. The New Jersey Transit bus line contains multiple stops near Grandview Terrace along John F. Kennedy Boulevard. Newark Liberty International Airport is approximately 9 miles away. Recent development of large-scale residential and mixed-use properties have been key to the revitalization of the city’s central business district.

Leslie Meyers of KeyBank Commercial Mortgage Group’s Affordable Housing Team structured the financing for the transaction to pay off the acquisition/construction loan financed by Eric Steinberg of KeyBank CDLI.

Recent Deals

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