Developer to Provide Essential Affordable Housing in Essex County, NJ

Candlebrook Properties, LLC, a diversified real estate company headquartered in New York, announced today the acquisition of Berkeley Terrace Apartments (Berkeley Terrace), a two story, 152- unit garden style, Section 8 property situated on 5.73 acres in Irvington, NJ.

The purchase and financing of Berkeley Terrace was made possible using Tax Exempt Bonds and Low-Income Housing Tax Credits, which will permit Candlebrook to implement an extensive renovation of the property, breathing new life into an asset that had received a failing score under HUD’s Real Estate Assessment (“REAC”) score.

The total cost for the project will be approximately $26,000,000 which will include interior and exterior renovations to rehabilitate Berkeley Terrace which was in danger of losing their subsidy contract due to a failing Real Estate Assessment Center score. Planned renovations include the replacement of all windows and exterior doors throughout the property; full scale renovation of all kitchens and bathrooms; implementation of energy efficiency measures; a new playground; and new security measures including a new gate and guard stand.

Candlebrook utilized Tax-Exempt Bonds issued by New Jersey Housing Mortgage Finance Agency (NJHMFA) and Low-Income Housing Tax Credits to purchase the property which provides essential affordable housing in Essex County, NJ to families at or below 60 percent of the area median income. Financing was made possible by R4 Capital Funding who purchased $16,300,000 in Tax Exempt Bonds and $8,058,250 in tax credit equity provided by Alliant Capital through their purchase of the Low-Income Housing Tax Credits and HUD’s provision of a Mark-to-Market Project Based Section 8 Contract

Construction is slated to begin in August 2017 with the expected completion date of August 2018.

About Candlebrook Properties

Candlebrook was founded in 2005, and launched its business focusing on the acquisition and repositioning of distressed apartment properties in the New York City area. This business later expanded to the suburban New Jersey markets and Philadelphia, and to date, our portfolio has comprised over 15,000 apartment units representing over $2 billion in value. Its investment strategy is to identify underperforming assets with untapped intrinsic value that can be realized through the implementation of a hands-on approach to management and execution by its vertically-integrated platform. Candlebrook's team now consists of nearly 150 dedicated professionals, operating across the Midwest and East Coast.