A total of 153 units of affordable housing across three properties in Atlantic City recently traded to WinnDevelopment, the development arm of Boston-based WinnCompanies. The acquisitions are part of their Sencit Liberty portfolio and the company intends to carry out a rehabilitation program across the three properties.
The company paid a total of $17.3 million for the properties at 1519 Baltic Avenue, 61 North Martin Luther King Boulevard, and 1711 Arctic Avenue.
All three of the properties were repositioned for residential affordable housing in the past according to the developer. 1519 Baltic Avenue was built as the Liberty Hotel in 1924 and later repositioned as a 76-apartment complex.
“We believe the successful rehabilitation of these three properties would not only improve the quality of life for the residents, but also positively impact the entire community and signal major investment in this area of Atlantic City,” WinnDevelopment Senior VP Brett Meringoff said. “With the community’s support, we are happy to take a big step toward what we hope will be a brighter future for the neighborhood.”
61 North MLK Boulevard is a 66-unit apartment complex originally built as the Illinois Avenue School. 1711 Arctic Avenue was built in 1927 and housed the Northside YMCA before it was converted to a 20-unit multi-family complex.
WinnCompanies said the acquisition was done through its Qualified Opportunity Fund and Sencit Liberty will be affordable for the next 30 years.
BlueHub Capital originated financing from the Capital Magnet Funds from the U.S. Department of Treasury, Citi Community Capital, and additional acquisition bridge debt financing. The City of Atlantic City, New Jersey Housing and Mortgage Finance Agency, U.S. Department of Housing and Urban Development, and the Casino Reinvestment Development Authority also provided planning and financial support for the acquisition, WinnDevelopment said in a news release.
WinnCompanies is the latest developer seeking to take advantage the federal Opportunity Zone program in Atlantic City.
At its most basic, the federal Opportunity Zone program enables developers and Qualified Opportunity Funds to receive tax incentives for investments in designated U.S. Census tracts with low median annual income.
According to the Press of Atlantic City, Asbury Park developer Pat Fasano purchased 21 contiguous properties between New York Avenue and St. James Place to develop a restaurant, outdoor entertainment venue, a hotel, and rental units eligible for Opportunity Zone tax incentives.
The publication also said New York-based real estate firm Advanced Consulting Inc. and Florida-based owner TJM were in talks to trade the Atlantic Club Casino Hotel as an investment property that qualifies for Opportunity Zone incentives.
The state of New Jersey recently designated four US Census tracts with beachfront access as Opportunity Zones in Atlantic City.