Preservation of Affordable Housing, Inc. (POAH), has closed on the purchase of six affordable rental properties in Florida, with a total of 846 apartments. The $49.2 million transaction involved five properties in Miami and one in Jacksonville.
The seller was Greater Miami Neighborhoods, Inc., a local nonprofit that is going out of business after more than 20 years. The group reached out to POAH to preserve the assets when it became apparent that the organization’s operations would not continue.
Boston-based POAH is a national nonprofit organization that purchases affordable housing to preserve its long-term affordability. This transaction is the group’s first in Florida, and it brings the number of affordable units owned by POAH to almost 6,500.
“POAH stepped in to preserve this affordable housing resource and to put the properties on a sound physical and financial footing for the long term,” said organization President Amy Anthony. “Hundreds of low-income Florida families and elders might have lost their homes if the properties were sold to the wrong buyer. Ensuring that these properties are safe, well-managed, and—most importantly—affordable, is at the very heart of POAH’s mission.”
The transaction costs include $27.4 million in acquisition costs, $8.3 million in rehabilitation costs, and $13.5 million in reserves, planning/design work, and other transaction costs.
The $27.4 million in acquisition financing includes new taxable financing from Prudential Mortgage Co. as well as the assumption of $3.6 million of financing provided by Florida Housing Finance Corp. and $1.9 million provided by Miami-Dade County, and $3.4 million of new subordinate debt from the Local Initiatives Support Corp. The Department of Housing and Urban Development also played a role in making the deal happen.
The Miami properties involved are Campbell Arms Apartments, Cutler Glen Apartments, Cutler Manor Apartments, Cutler Meadows Apartments, and New Horizons Apartments. Middletowne Apartments in the Jacksonville area was also purchased.