EAST ORANGE, NJ-Beech Street Capital has completed a $20 million Freddie Mac refinancing of Norman Towers, a 406-unit subsidized housing complex here.
Norman Towers is a Section 8 Housing Assistance Payment property that is restricted to tenants who are age 62 and older or disabled. The transaction was originated by Abe Shonfeld of Meridian Capital Group and financed by Beech Street through its correspondent relationship with Meridian.
The borrower developed the property in 1980 and has owned and operated it since then. The current 20-year HAP contract runs through 2030.
The new fixed-rate loan has a 10-year term, with two years of interest-onl payments and 30 years of amortization.
John Cicchino, the borrower's managing member, said that “Beech Street was very responsive to our needs and is committed, as we are, to providing safe and accessible housing for New Jersey seniors.”
The borrowing group also manages the property, which has common area amenities including a kitchen, activity room and a commissary store. There is also a commercial-quality laundry room available for tenant use on the ground floor. The building is monitored 24 hours a day by front desk personnel.
Units have full kitchens and emergency pull cords in bedrooms and bathrooms.
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