The Michaels Organization’s latest Camden development to rehab 64 affordable housing units

By Linda Lindner, April 5, 2019

Camden’s Cooper Plaza Townhomes is set for a major renovation following a successful financial closing by its developer, The Michaels Organization.

Cherry Hill-based TD Bank provided a $6.9 million construction loan for the preservation of the townhomes, which sit in an affordable housing community in the Cooper Plaza historic district in Camden. All 64 townhouses will remain permanently affordable, serving households who earn less than 80 percent of the area median income.

“We are excited to preserve this affordable housing community, which is centrally located to employment, schools, and the Walter Rand Transportation Center and which is a critical component of the comprehensive revitalization of the Historic District,” said Nicholas Cangelosi, vice president of development for Michaels.

The $14 million substantial rehabilitation will modernize both the interiors and exteriors of the 64 townhomes. Major upgrades to the building systems will include new HVAC and mechanical systems, new roofs, new windows and porch improvements, and the construction of new drainage and waterproofing systems throughout the community to address water infiltration issues. Interior improvements will include renovated kitchens and bathrooms, new appliances, and new luxury resilient flooring throughout all homes.

In addition to the $6.9 million construction loan from TD Bank, funding includes a $3.1 million permanent mortgage provided by Berkadia, $4.1 million in private equity raised from the sale of federal Low Income Housing Tax Credits, and $6.8 million in permanent conduit bond financing, both allocated by the New Jersey Housing and Mortgage Finance Agency. The New Jersey Department of Community Affairs provided $1.6 million in assumed mortgage funding and Camden County provided $300,000 in Trust Funds to the preservation. Fulton Bank invested in the tax credits, which were syndicated by Riverside Capital.

“TD Bank is proud to partner with The Michaels Organization on this very important redevelopment of historic homes which will provide affordable housing for those who need it most,” said Brian Gallagher, Vice President at TD Bank. “This project further enhances the bank’s commitment to support low and moderate-income families by helping to build and sustain strong communities where people of all incomes can achieve their full potential.”

A ceremonial groundbreaking for Cooper Plaza Townhomes is scheduled for April 26 at 10:00 a.m. Construction is expected to be completed before year’s end.