$40M Affordable Housing Rehab Funded in Jersey City

Rendering of Brunswick Estates rehabilitation, Jersey City, NJ

JERSEY CITY, NJ— A $40.2 million affordable housing rehabilitation project will be getting underway at Brunswick Estates, a 32-year-old income-restricted community of nearly 400 residents, with the completion of financing for the complex, multi-partner development effort. Some eight public and private partners are engaged in the project. Boston-based WinnDevelopment , the development arm of award-wining national multifamily property developer and manager, WinnCompanies , says it closed on the financing to acquire and renovate 131 units of affordable housing in the Brunswick Estates complex. “We had not developed any properties in New Jersey in our history, so we really wanted to make a push into New Jersey and expand our business and grow that way,” Brett Meringoff, senior vice president, WinnDevelopment, tells GlobeSt.com exclusively. “It fits very well into our overall model.” “We have a management presence in affordable housing in New Jersey,” says David Ginsberg , project director, WinnDevelopment. “We like to let our management and development efforts complement each other. Currently we are the largest manager of affordable housing in the country.” The acquisition and rehabilitation project will deliver an extensive interior and exterior upgrade to the homes, addressing substantial deferred maintenance needs, including lingering damage from Hurricane Sandy, a lack of community space, adequate security, ADA compliance and energy efficiency. Meringoff says WinnDevelopment ‘s 45-year track record of financing and developing affordable housing equips the firm to manage all the moving parts and the large group of participating agencies. “What we feel like we do best is bring together all of the public and private financing sources, using very creative and advantageous structuring of the financing to make these deals possible,” says Meringoff. “The benefit of it is that it provides great housing at a low cost to people who need it most. The financial feasibility of that is always a challenge, so part of what we do day-to-day is finding ways to make it work, with all of the public and private resources available.” The public-private partners in the Brunswick Estates project are: The City of Jersey City , including the Jersey City Department of Community Development ; the New Jersey Economic Development Authority ; the New Jersey Housing and Mortgage Finance Agency ; Citi Community Capital ; The Richman Group Affordable Housing Corporation ; New Jersey Community Capital ; Boston Community Capital ; and Greater Bergen Community Action . The deal was brokered by Dane PCG , based in New York City. “The completion of this acquisition is the first step in what we believe will be an important development not only for the residents of Brunswick Estates , but also for the community of Jersey City,” says Lawrence H. Curtis, president and managing partner of WinnDevelopment . “We worked hard with our public and private partners to get to this point, and we look forward to a March 10 groundbreaking to celebrate the start of these renovations.” Brunswick Estates is a townhouse-style complex featuring 14 clusters of buildings with apartments units ranging from two to five bedrooms, as well as a central building. There are 396 bedrooms in total.

Brunswick Estates, Jersey City, NJ

“We are pleased to provide $2 million of Affordable Housing Trust Fund dollars toward the renovation of these 131 units of affordable housing so residents have quality, affordable housing for years to come,” says Jersey City Mayor Steve M. Fulop . “By investing in affordable housing, we are investing in the entire community and providing first rate affordable housing that complements the ongoing revitalization of neighborhoods throughout Jersey City.” No residents will be permanently displaced during construction, which be performed in phases during weekdays on a building-by-building basis. The residents of eight units that need to be made ADA compliant will be temporarily relocated off site but within the neighborhood for approximately two weeks. WinnDevelopment expects the rehabilitation of The Brunswick Estates to withstand market pressures as Jersey City continues to be a target of upscale market-rent development. One factor aiding stability is that the Brunswick project benefits from Section 8 financing from the US Department of Housing and Urban Development, notes Meringoff . “Long-term ownership is something we take pride in and is really a part of our business,” he says. “When we go into projects, particularly in hot urban areas like Jersey City where market rents are increasing and gentrification is a growing problem, we find that is the most rewarding place to do a project like this, because it serves such a great benefit for the community in addition to the people living there, because great affordable housing in these gentrified areas is hard to hold onto.” “The closing of financing to rehabilitate Brunswick Estates is a critical step toward modernizing these moderate income residential units,” said EDA CEO Melissa Orsen .  “The long overdue rehabilitation will include ‘green’ elements to increase energy efficiency, and will create amenities such as community and green spaces, a playground, a garden and enhanced security – all elements that will improve quality of life for residents, and advance key objectives of the residential Economic Redevelopment and Growth Program.” The project is expected to spur additional investment and beautification along the Montgomery Street corridor, which serves as a visible gateway to Jersey City’s downtown. “We are delighted to contribute to the success of Brunswick Estates by providing nearly $28 million in construction and permanent financing for the project,” says NJHMFA Executive Director Anthony L. Marchetta . “By utilizing our innovative Conduit Bond program, developers also get the added benefits of HMFA’s tax-exempt financing and the four percent federal Low Income Tax Credits. As the agency continues its key mission to provide quality, safe and affordable rental communities across the state, we look forward to adding Brunswick Estates’ 131 rehabilitated family units in Jersey City to our growing portfolio of affordable housing success stories.” In addition to the physical improvements planned for the property, WinnDevelopment has partnered with Greater Bergen Community Action to provide intensive financial literacy services to Brunswick Estates residents. GBCA is Jersey City’s Head Start provider and also serves the city with a variety of other programs geared to improve the lot of low and middle-income families. “We look forward to using our expertise to support this community by educating them on a variety of topics regarding their finances,” says Robert F. Halsch Jr., executive director , Greater Bergen Community Action . “True financial independence begins with learning about money – and learning how to manage it in what can be a confusing environment.” The renovation work will create approximately 70 construction jobs. “We were excited when WinnDevelopment approached us to support their bid to purchase Brunswick Estates because we knew that they are the right organization to perform a high quality rehabilitation and effectively preserve this important affordable rental property,” Bernard Husser, executive vice president of The Richman Group Affordable Housing Corporation. “ WinnCompanies is an extraordinary development and property management company with the right vision for this property and brought together a strong group of experienced financial funders.  The Richman Group Affordable Housing Corporation , as one of the nation’s largest affordable housing tax credit syndicators, has invested in Jersey City for over 30 years.  We are proud to partner with WinnCompanies on Brunswick Estates and continue to provide many more years of quality affordable housing to the residents of Jersey City.” “ New Jersey Community Capital is thrilled to be part of such a vital project that will provide safe, high-quality affordable housing to hundreds of residents,” says Wayne T. Meyer, president of NJCC . “The effects of this redevelopment will reach beyond this affordable housing project to bring stability and vibrancy to the surrounding community, allowing it to thrive.”