Norman Towers, a 16-story senior affordable housing development built in 1980, is an important part of its East Orange, NJ neighborhood. It was still owned by the family of the builder, Rudy Cicchino, when it went up for sale. Due to its history and significance as a local resource, many desired that it remain affordable and offer below-market-rate rentals. The property was at risk of being converted to market rate due to the strong market growth and East Orange renaissance. Serving more than 400 seniors and being prominently viewable from all parts of the city made this property’s sale very high profile.
This was CPP’s first project in New Jersey and its fourth on the East Coast at the time. CPP felt strongly that it should act as stewards of Norman Towers family legacy and tenant-centric operations. Accordingly, CPP partnered with L+M Development Partners, who were able to bring in a local management team and contractor; a development plan was devised that honored the legacy and allowed for a significant renovation to take place. CPP secured the financing that addressed resident needs in the long term while also extending the communities affordability. The financing included a Freddie Mac TEL (Tax-Exempt Loan) and a permanent loan just shy of $100 million. CPP also secured tax credit equity (just under $43 million) supplied by Wells Fargo, which also originated the Freddie TEL. The LIHTCs are four percent and were accompanied by bonds issued by the New Jersey Housing and Mortgage Finance Agency (NJHMFA).
With CPP’s involvement, the legacy of Norman Towers remains intact, continuing to serve lower-income seniors, both residents and community members, in East Orange. Each of the 400+ units received approximately $700,000 in rehabilitation, in addition to a significant preservation effort on the building’s exterior and amenities. The property is a gathering place for senior activities and serves as a polling place during elections, so the renovation and enhancements help preserve and protect these vital services.
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