Steele Properties announced the acquisition of Garden City Apartments, a 252-unit affordable housing development in north Houston.
As part of the $31 million transaction, the company will invest more than $38,000 per unit on substantial property improvements at the 100% project-based Sec. 8 community. Residents will receive updated kitchens featuring Energy Star-rated appliances, bathrooms, flooring, lighting, plumbing as well as central heating and air.
“Garden City is an essential housing community for the city of Houston, and we are pleased to be able to preserve and improve it for residents,” said Chad Asarch, a principal owner of Steele. “It was very important for us to close this transaction, particularly since the property has not been renovated in almost half a century. We look forward to beginning work on the rehab to strengthen this vibrant community and provide an environment in which residents can take pride.”
In addition to rehabbing the apartments, Steele plans to make significant accessibility improvements, including the installation of concrete ramps and accessible sidewalks throughout the property. Fifteen units will be adapted to become accessible under the American with Disabilities Act, while two units will accommodate the visual and hearing impaired.
Approximately $216,334 in security upgrades will be made and include new security cameras, LED exterior lighting, and key fob access to laundry facilities and community building. The 6,000-square-foot community building will be completely renovated and will feature a library, fitness center, computer lab with Wi-Fi internet access, and large community gathering space with a kitchen. A new gazebo will be installed on the property along with picnic tables, barbecue grills, a new basketball court, and two playgrounds.
“The enhancements and security upgrades at Garden City will not only revitalize the property and surrounding community but also will provide residents with a quality and safe place to call home,” said Paul Moore, acquisition manager at Steele.
Equity for the project was provided by PNC Real Estate, which purchased the low-income housing tax credits awarded by the Texas Department of Housing and Community Affairs. PNC also will service a Freddie Mac loan which was generated through the sale of tax-exempt bonds.
Residents will have access to supportive services, including career training, tax preparation assistance, creative writing classes, an annual health fair, and after-school tutoring for children.
Garden City will be managed by Monroe Group.