Hudson Atlantic Realty navigates complex sale of 59-unit affordable senior housing community

Senior Horizons Bayonne, NJ deal shaped by multi-agency approvals and layered financing

Bayonne, NJ — Adam Zweibel, president of Hudson Atlantic Realty and Zweibel Multifamily Group, and the exclusive listing broker for the seller, announced the closing of the sale of Senior Horizons of Bayonne Urban Renewal, LLC, a 59-unit senior affordable housing community located at 74 Lexington Ave. in Bayonne.

The transaction stood out for its exceptional complexity, involving multiple overlapping regulatory restrictions, layered public financing, decades-long compliance obligations, and approvals from multiple government agencies — all typical of Low-Income Housing Tax Credit (LIHTC) rehabilitation projects. The property is subject to:

• A LIHC Regulatory Agreement with the New Jersey Housing and Mortgage Finance Agency (NJHMFA) through 2047

• A New Jersey Department of Community Affairs (NJDCA) Affordable Housing Agreement through November 2047

• A Hudson County HOME regulatory agreement through 2042

Tenant restrictions require 30% of units leased to households at or below 60% of Area Median Gross Income (AMGI), 40% at or below 50% AMGI, and 30% at or below 40% AMGI. The deal also included a Payment in Lieu of Taxes (PILOT) agreement with the City of Bayonne.

Financing layers comprised two mortgages — a first mortgage from the NJDCA Neighborhood Preservation Balance Housing Program and a second mortgage from Hudson County — plus a non-interest-bearing solar photovoltaic loan from NJHMFA, repayable through the sale of Solar Renewable Energy Certificates (SRECs). The property was originally placed in service as a LIHTC rehab project in November 2022.

“Closing this deal required mastering thousands of pages of regulatory paperwork across multiple government agencies and navigating decades of overlapping restrictions, accrued interest positions, and compliance covenants,” said Zweibel. “By leveraging advanced AI tools alongside deep industry expertise, we were able to efficiently analyze, organize, and resolve the intricate layers of documentation, financing, and operational requirements to successfully complete the transaction.”

Hudson Atlantic Realty specializes in all complex multifamily transactions, including those involving market-rate and/or affordable housing.