Cervelli Real Estate & Property Management is pleased to Announce a Successful Turnaround of 36 units of Affordable Housing in Hunterdon County
Cervelli Real Estate & Property Management is pleased to announce the acquisition and stabilization of a 36-unit affordable housing complex in Hunterdon County. The under performing property was previously owned and managed by a nonprofit corporation. A dearth of attention to the complex for several years prior to Cervelli’s involvement had caused the value to begin to erode. The property suffered multiple hardships, including an insufficient revenue stream due to high vacancies, outrageous energy expenses and tenancy issues ranging from incomplete re certification to outright nonpayment.
Cervelli acquired the property through a unique mortgage offered by the United States Department of Agriculture (USDA) under Section 515, which provides affordable housing in rural areas. After the loan was secured, Cervelli created an effective plan to address both revenue loss and expense reduction. Once ready for the market, filling the vacant units was an obvious priority for the Cervelli team. However, the real boon was eliminating water leaks and implementing efficient energy system management. Not only were tenant issues and complaints resolved in just one year, the property also began generating a positive income and operating within the budget in less than 18 months. Decades of industry experience combined with expert management staff allowed the Cervelli team to succeed in this undertaking.
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