Pilgrim Baptist Village, Newark, NJ

NEWARK, NJ—New York City-based Hudson Valley Property Group has acquired Pilgrim Baptist Village, a 305-unit apartment complex here.

The new owner plans to undertake a $20-million capital improvement program at the property that consists of 26 three-story apartment buildings spread out over 10 acres.

The purchase was announced by Cleveland-based KeyBank Real Estate Capital, which secured a total of $62.3 million of Fannie Mae financing for Hudson Valley Property Group in connection with the acquisition and renovation of the multifamily property built in 1978. Tabare Borbon of KeyBank Real Estate Capital's Commercial Mortgage Group arranged the financing deal.

The renovations planned at the property at 446 Bergen St. include new roofs, siding, boilers, bathroom and kitchen upgrades, as well as extensive site work and landscaping, which are intended to create an accessible site with new handicap-accessible units. Other upgrades include energy efficient lighting, water conservation measures, and a state-of-the-art security system incorporating access controls and 24-hour active monitoring.

HVPG is utilizing 4% low-income housing tax credit and tax-exempt bonds issued by the New Jersey Housing and Mortgage Finance Agency to finance the rehabilitation.

As part of the financing, HVPG entered into a LIHTC partnership with PNC Bank, National Association, the tax credit investor, and executed a 20-year mark-up-to-market housing assistance payment contract, with the assistance of the U.S. Department of Housing and Urban Development. All units will be restricted to those earning 60% area median income for a 15-year compliance period.