Oak Ridge apartments to make more than $1M in new tax incentives
Oak Ridge, New York, USA—Oak Ridge, NY—The apartment complex in which Oak Ridge Apartments currently sits is making more than a million dollars in new incentives over the next four years.
Oak Ridge Properties has become a popular destination for luxury apartment rentals across the country and will see an increase in incentives for tenants over the coming years.
The new tax incentive package is being announced at a ribbon cutting ceremony in Oak Ridge this week, and is one of several to benefit Oak Ridge in recent years.
Oak Ridge Properties will receive $1.6 million in the next three years to increase the rental rate at its apartment buildings from 2.9 to 3.4 percent.
The increase will also be paid for by the new tenant tax credit, which will be paid to owners of apartment buildings in which they are the majority owner.
Oak Hill, which currently holds the lease on its Oak Ridge building, will receive an additional $2.8 million over the same time period.
The incentive package will increase the rents for all Oak Ridge properties by 10 percent over the new lease period.
Oak Creek Properties, which owns and operates the other two Oak Ridge buildings, will see a 7 percent increase in their rental rate from 2 percent to 3 percent, with an additional 0.5 percent to be paid by the landlord, the company said.
The tax incentive packages for Oak Ridge and Oak Creek Properties will be effective starting in April 2020.
Oakridge Apartments in Oak Creek, New Jersey, USA, and Oak Ridge Village in Oak Hill, New England, will also receive $3.4 million in incentives over four years starting in 2021.
This new incentive package includes $1 million in tax credits for rent, $1,000 for utility and $500 for property taxes.
The incentives will be distributed to the remaining 2,200 Oak Ridge units that will be available in the first half of 2022.
Oakwood Properties in Oakland, California, USA will also see an additional 5 percent increase over four months in its rental rate, which includes an additional 1.25 percent to pay for utilities.
The incentive packages are the result of a long-standing partnership between Oak Ridge Development Company, the New Jersey-based property owners, and the New England-based Oak Ridge Alliance, which is the regional governing body for New England and the Northeast.
The partnership, which dates back to 2006, helped to develop Oak Ridge’s original development plans for the New York City area.
The Oak Ridge Villages are currently in the process of renovating their three buildings, which have an estimated value of more than half a billion dollars.
The Villages currently have approximately 6,600 residents and have plans to add another 1,500 by 2020.
The Oak Ridge Buildings are owned by Oak Ridge Group, a New Jersey company.
OakRidge Villages in Oakville, Tennessee, USA and Oakwood Villages of Oak Ridge Valley, New Hampshire, USA have each received $2 million over three years starting from 2019.
The Villages have received a new incentive of $3 million over five years starting with a $2,500 increase in rent, and a $3,000 increase in utility.
The new incentives will provide a further $1 to $3 per square foot for every square foot of building space that the Villages rent.
The additional rent for the Oak Ridge Building will be $4,500, with a new $3-per-square-foot tax credit to help offset the additional cost of utilities.