MEMPHIS, TENN.—ALCO Management, Inc., has begun an $8 million upgrade of four affordable apartment communities in Tennessee.
The recapitalization initiative will transform 466 apartments in Nashville, Memphis, Parsons, and Camden.
ALCO is one of the largest affordable housing owners in the country, with a portfolio of 7,000 conventional and affordable units in eight Southeastern states.
The properties being renovated are:
- Dellway Villa Apartments: Built in 1979, the 244-unit Nashville community will undergo $4 million in renovations. To finance the work, ALCO assembled a package using bonds issued by the Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, a federally insured mortgage through Wells Fargo and the Nashville field office of the Department of Housing and Urban Development (HUD); low-income housing tax credits and Tax Credit Assistance Program (TCAP) funds through the Tennessee Housing Development Agency (THDA) and equity provided by Regions Banks.
- Saints Court Apartments: Built in 1980, the 128-unit Memphis development will receive a $2 million renovation. Funding comes from a mix of bonds and a PILOT tax abatement issued by the Health, Educational and Housing Facility Board of the city of Memphis; a federally insured mortgage through Wells Fargo and the Nashville HUD office; housing tax credits and TCAP funds through THDA; HOME funds through the city’s Division of Housing and Community Development; and a first-time equity investment in affordable housing by Independent Bank.
- Tranquility Apartments: Built in 1971, the Camden development has 44 units. It is receiving a $900,000 renovation. To finance this project, ALCO secured a new first mortgage through Regions Bank and used housing tax credit exchange funds through THDA.
- Gunn Garden Apartments: Built in 1979, the 50-unit seniors housing property in Parsons is undergoing a $1 million facelift. ALCO left existing financing arrangements in place and used tax credit exchange funds through THDA.