LIHC Investment Group, one of the nation’s largest owners of multifamily affordable housing; L+M Fund Management (LMFM), a leading investor in preserving workforce and affordable multifamily housing; and lender Rockport Mortgage Corporation announced the close of a $52.9 million FHA Section 223(f) refinancing loan for The Montgomery Paulus Hook, a 308-unit mixed-income property in Jersey City (formerly known as Paulus Hook Towers).
“With this financing in place, The Montgomery will help keep good homes within reach for families of all income levels while allowing ownership to undertake improvements that will benefit the property and those who live there for decades to come,” said Andrew Gendron, Principal, LIHC Investment Group. “We are grateful for the continued partnership from LMFM and Rockport and acknowledge our colleagues at HUD for making this refinancing possible.”
“This critical project not only shores up affordable housing in a highly sought-after New Jersey community for future generations, but it also delivers needed improvements to ensure a high quality of life for every resident. Together with our partners, we look forward to starting work on this major overhaul,” said Joe Weishaar, Senior Vice President, L+M Fund Management.
“We are pleased to once again work with all of the parties involved to make this refinancing a success,” said Dan Lyons, Managing Partner of Rockport Mortgage. “The Jersey City Waterfront rental market continues to expand. This refinancing allows the owners to extend the useful life of the property, improve the quality of life for residents and ensure the sustainability of safe, affordable housing in the community.”
The financing will be used to pay off existing debt, fund replacement reserves and complete additional upgrades and repairs at the property to further enhance and improve residents’ quality of life. These additional improvements continue work on the property that began in 2018. Since that time, the owners have replaced exterior windows, installed new heat exchangers, and completed water heater replacements and elevator repairs. In-unit upgrades have continued during unit turnover. Additional improvements to the property will include the replacement of fan-coil units in each of the 308 apartments, extensive common area renovations including a new fitness center and yoga room, and a new resident lounge.
Paulus Hook is a vibrant, thriving neighborhood in Downtown Jersey City boasting sweeping views of the Manhattan Skyline. The Jersey City Waterfront neighborhood provides residents with an array of restaurants, shopping and mass transportation options. The property was originally developed in 1973 under Section 236 of the of the National Housing Act.
Led by Charlie and Andrew Gendron, LIHC Investment Group has grown to become one of the most respected real estate investment groups in the industry. The firm holds an ownership interest in 37,500 units of multifamily housing nationwide and appears on Affordable Housing Finance’s Top 50 Affordable Housing Owners List. Over the years, LIHC has transacted with over 4,500 Limited and General Partners to acquire well over $6.5 billion in holdings, primarily in metropolitan areas such as New York City and Boston.
