SVN Affordable and Pryor Cashman Close $180M Affordable Housing Portfolio Sale

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SVN Affordable and Pryor Cashman represent Kline Enterprises in the sale of $180M Northern New Jersey Affordable Housing Portfolio

SVN Affordable | Levental Realty (SVN Affordable) announced today that the 1,009-unit affordable housing portfolio owned by Kline Enterprises (Kline) and managed by First National Properties (FNP) has sold. SVN Affordable was the exclusive listing broker tasked with valuing, marketing and negotiating the transaction on behalf of Kline. Kline is a second-generation, family-owned organization who assembled the impressive portfolio of senior and family affordable assets located in Paterson, Orange, East Orange, Metuchen, Old Bridge, Hazlet and East Windsor. The affiliate property management company, FNP and their tenured site staff consistently received outstanding achievement awards for providing safe and affordable housing for its residents. Pryor Cashman’s Ronald B. Kremnitzer, co-chair of the Real Estate practice, together with partner Perry Amsellem and associate Ari Tran, acted as seller’s counsel for Kline and FNP and remained pragmatic and creative throughout numerous negotiations that have been ongoing since May of 2016.

The seven properties are subsidized by long-term project based section 8 contracts and encumbered by various regulatory restrictions. Some of the characteristics of the individual assets made the portfolio uniquely challenging to value and finance. The $180M value is the result of a sophisticated financing structure specific to portfolio transactions. The sale of the portfolio will ensure long-term affordability for over 2,500 residents and preservation of the assets through sustainable upgrades and planned renovation over the next several years.

The buyer was a joint venture between Hudson Valley Property Group, Red Stone Companies and Wheelock Street Capital. Community Realty Management will act as third-party property manager, while retaining the majority of the existing staff members at each of the properties. Financing was provided by Walker and Dunlop and Fannie Mae, while Goodwin Procter LLP, Nixon Peabody LLP and Berman Indictor LLP served as purchaser’s counsel for the transaction.

“SVN Affordable was selected as the exclusive listing broker for the seller given our national platform and understanding of the regulatory and complex financial environment surrounding this asset class. Senior Advisor, Jamie Renzenbrink led the transaction on behalf of the firm. After creating a competitive pool of 168 qualified affordable developers, we vetted out buyers’ underwriting assumptions and debt/equity models to assure we had a clear and closable path to closing given the multitude of challenges and assumptions associated with such an acquisition. Hudson Valley, Red Stone, and Wheelock were selected as a result of such diligence.” Gene Levental, Managing Director, SVN Affordable

“This was a complex transaction that required the finesse of an experienced legal team,” said Ronald B. Kremnitzer, lead counsel on the transaction. “We are thrilled to help this sophisticated deal, which included multiple contracts and an in depth understanding of regulatory hurdles, across the finish line after a diligent, yearlong effort.”

About SVN AFFORDABLE | Levental Realty
SVN AFFORDABLE | Levental Realty ( is a nationally recognized leader in the niche market of Affordable Housing brokerage focusing solely on valuing, marketing and selling Project-Based Section 8 and Section 42 housing through their national platform and proprietary database.

About Pryor Cashman
Pryor Cashman LLP ( is an independent full service law firm with over 140 attorneys in its main office at 7 Times Square in New York City and an office in Los Angeles. With broad and sophisticated transactional, intellectual property and litigation practices, Pryor Cashman provides a wide range of services to meet the varying legal needs of institutions, entrepreneurs and individuals. The firm has well-established relationships with firms throughout the U.S. and the rest of the world to serve its national and international clients.

About SVN®
SVN International Corp. (SVN), a full-service commercial real estate franchisor of the SVN® brand, is one of the industry’s most recognized names based on the annual Lipsey Top Brand Survey. With 200 offices and over 1600 Advisors and staff, SVN provides sales, leasing, corporate services and property management services to clients across the globe. SVN Advisors also represent clients in affordable housing, auction services, corporate real estate, distressed properties, golf & resort, hospitality, industrial, investment services, land, medical, multifamily, office, retail, self-storage and single tenant investments. All SVN offices are independently owned and operated. For more information, visit

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