Northgate Apartments, a 321-unit, 21-story family affordable housing building in Camden, was acquired by Hudson Valley Property Group, according to a Wednesday announcement.
The New York-based affordable housing preservation company is well known for its strong track record of transforming projects like Northgate and for its ability to navigate the complex layers of agency and municipality approvals and creative financing structures.
The building, originally built in 1963, will see a reimagination of the façade, which will preserve the essence of the mid-century era. The renovation also includes the creation of fully accessible dwelling units and site improvements to create a fully accessible site.
Scheduled upgrades will be holistic, including a complete building revitalization with infrastructure upgrades, mechanical system replacements and a number of in-unit bathroom, kitchen and apartment safety improvements.
HVPG is financing the acquisition and property rehabilitation with a mix of federal low-income housing tax credits funded by Enterprise, Aspire NJ state tax credits and a HUD FHA 221d4 loan originated by PGIM.
The Northgate effort was one of the first affordable housing preservation projects to use Aspire NJ administered by the New Jersey Economic Development Authority. The City of Camden also supported the project with a long-term payment-in-lieu-of-taxes agreement, which will be instrumental in the property’s future success.
The property will also be subject to Low Income Housing Tax Credit income restrictions through a 30-year compliance period, and tenants must qualify at 60% of Area Median Income to reside at the property.
“We look forward to working with the new owners of Northgate One, as Hudson Valley Property Group acquires the apartment building adjacent to the Camden entrance to the Ben Franklin Bridge,” Camden Mayor Victor Carstarphen said.
“We believe this property will see significant improvements under the ownership and care of a responsible developer in Hudson Valley Property Group. This is a big step towards improving the quality of life citywide and yet another a long-term investment in Camden’s revitalization.”
The transformation takes substantial time and resources to structure and execute and requires a true partnership with the entire Camden and New Jersey community, including the residents that call Northgate home.
“HVPG remains committed to transforming communities like Northgate into safe, modern homes and supportive environments for families, and we look forward to showcasing the positive impact our investments and capable team can have on residents and the broader community,” Jason Bordainick, co-founder and managing partner of Hudson Valley Property Group, said.
The project received support from various partners, including the Camden County Improvement Authority and New Jersey Housing and Mortgage Finance Agency providing financing support, the Metro Co., which acted as the tax credit consultant, and Citizens Bank as the construction lender. Additionally, BlueHub Capital served as the Aspire lender.
“The sale and renovation of this building will be a significant enhancement to the city of Camden and the residents that live in Northgate,” Commissioner Director of the Camden County Improvement Authority Louis Cappelli said.
To ensure the long-term affordability of the property, 96.5% of units are subject to a new 20-year project-based Section 8 HAP contract, which ensures units covered by this subsidy pay no more than 30% of their household income towards rent.
The acquisition of Northgate follows Hudson Valley Property Group’s previous 2022 completion of an $85 million acquisition and renovation project at the Community Meadows apartments, a 391-unit, 21.5-acre complex located in Camden’s Morgan Village in October 2022.