Two Projects Completed in Michigan
MIDLAND, MICH. -- Brookstone Capital, a Midland-based developer, has completed two affordable housing projects in Michigan.
The Village at Rivers Edge is a 48-unit development in the rural town of Kalkaska. The $4.25 million project was financed partially through lowincome housing tax credits (LIHTCs). Fifth Third Bank was the construction lender, and the Great Lakes Capital Fund is both an investor and a permanent lender.
310 South Mechanic Lofts is an adaptive reuse of a 119- year-old Elks Lodge that has been converted into 18 affordable loft apartments. The property is located in downtown Jackson. The project was completed for $2.8 million and was financed through a combination of LIHTCs and a permanent loan through Fifth Third Bank.
Both projects were designed by Hooker DeJong, an architecture and engineering firm based in Muskegon, Mich.
Three Affordable Home Projects Receive Grants
NEW YORK CITY -- The New York State Affordable Housing Corp. approved $3.1 million in grants to build 89 new affordable homes in Brooklyn and the Bronx for households with low and moderate incomes.
The grants will go to the Housing Partnership Development Corp. through its NYC Partnership Housing Development Fund and its development teams.
The projects receiving the grants are: New Hope-Morris, a 10-story condominium complex with 39 units in the Bronx; East New York Cluster 6, 27 units on scattered sites in Brooklyn; and Mother Gaston & Dean Street Residences, 23 new units in the Ocean Hill-Brownville section of Brooklyn.
Phoenix Acquires Brooklyn Portfolio
NEW YORK CITY -- Locally based Phoenix Realty Group has announced the acquisition and renovation of 362 affordable apartments in the Bedford-Stuyvesant neighborhood of Brooklyn for $96 million. All of the units will be preserved as affordable, and 95 percent of the units will be subsidized with long-term Sec. 8 contracts.
The seller of the portfolio, Bedford Stuyvesant Restoration Corp., said that for several years, it had sought a developer that would buy the apartments with the intention of keeping units affordable.
The price includes $30 million to renovate the apartments. Tenants are expected to remain in place during the yearlong renovation at the 15 buildings.
Financing for two of the properties included the restructuring of their existing mortgages through the Department of Housing and Urban Development's (HUD) Mark-to-Market program, and the third property included the repurchase and extension of a ground lease that was sold to the city. In addition, the total purchase price included the settling of payables owed by the properties.
Financing for the acquisition includes tax credit equity from Phoenix Realty Group, tax-exempt bonds and subsidies from the New York City Housing Development Corp., and tax abatements and subsidies from the New York City Department of Housing Preservation and Development.
Seniors Project Under Way in NOLA
NEW ORLEANS -- Nonprofit developer Volunteers of America, based in Alexandria, Va., has broken ground on a new affordable housing development for seniors here.
The Terraces on Tulane, a 200-unit complex, is being built on the site of the Forest Towers senior property, which was damaged by Hurricane Katrina. The development will include a computer lab and offer residents health and transportation services and a variety of social, educational, and recreational activities. Project partners include JPMorgan Chase, HUD, the Louisiana Housing Finance Agency, the city of New Orleans, and the Major League Baseball Players Trust. The project is expected to be completed in late 2009.
The development is part of Volunteers of America's initiative, "Coming Back Home," to create more than 1,000 units of affordable rental housing in the Gulf Coast.
Development Partners to Rehab in Oklahoma
BARTLESVILLE, OKLA. -- Boston Capital, a real estate investment firm, and Summit America Properties, Inc., a Montgomery, Ala.-based developer, have acquired a 120-unit affordable multifamily development here, about 40 miles north of Tulsa.
Brookhaven Plaza Apartments is situated on eight acres and includes six twostory, garden-style buildings. The development targets households earning no more than 50 percent of the area median income (AMI). Renovations will include the remodeling of the existing leasing office, new playground equipment, new roofs, new HVAC equipment, and more. The rehabilitation will amount to $28,546 per unit in total construction costs.
Landmark Rehabbing Units at Another Mill
YORK, N.C. -- An old mill built in 1908 is getting new life as 40 apartments for seniors. The developer is Winston-Salem, N.C.- based The Landmark Group, which is spending $5.7 million for the conversion.
Dwayne Anderson, founder and president of Landmark, said he was confident that the Lockmore Cotton Mill could be rehabilitated when he first inspected it last year, but what he really needed was the city's endorsement.
"We love reworking these historic buildings, but we've learned that you can't push a chain through the head of a pin," Anderson said. "You first have to have a city with a community development agenda. These buildings can serve as a catalyst for other development."
Landmark's $13.4 million development of the Highland Park Mill in Rock Hill, S.C., later became the first to qualify for textile mill revitalization tax credits from the state.
Affordable Apartments Completed in Northern Idaho
LEWISTON, IDAHO -- A 48-unit apartment complex for seniors and persons with disabilities has been completed here. The developer of the affordable apartments is Thomas Development Co.
Tullamore Apartments includes 32 one- and 16 two-bedroom units. The project is the developer's second affordable complex in Lewiston.
Financing for the project comes from the Idaho Housing and Finance Association and National Equity Fund, Inc.
CVHC Breaks Ground on Green Complex
LA QUINTA, CALIF. -- Coachella Valley Housing Coalition (CVHC) has broken ground on a $90 million affordable housing development near Palm Springs.
When completed, the development, Wolff Waters Place, will include 218 units affordable for households with incomes maxing out at 50 percent of the AMI. Each unit will feature a patio or balcony. The project expects to obtain Leadership in Energy and Environmental Design certification from the U.S. Green Building Council for the use of various sustainable construction and design elements.
The city of La Quinta's Redevelopment Agency sold the project site to CVHC for $1, and made $30 million available to help fund the project. Additional funding came from Citibank and Wells Fargo, which invested $43 million in the project through National Equity Fund Inc., which syndicated the project's federal LIHTCs.
The complex will also offer such services as English as a second language classes, art and nutrition classes, computer training classes, a homeownership program, an aquatics program, and after-school and summer camp programs. The project is slated for completion in 2010.