Second Phase of Chicago Project Secures Financing
CHICAGO—Centerline Holding Co. said it has provided $30.5 million in equity financing for phase II of Roosevelt Square Apartments here. The HOPE VI program provided an additional $17 million for phase II.
Upon completion, the multi-phase Roosevelt Square will consist of 2,441 new mixed-income rental and for-sale homes on 100 acres. The redevelopment of existing affordable housing stock is set to take place over 10 years. Phase II consists of 185 rental units and 247 condominium units.
“Because the buildings are designed so that rental and for-sale and affordable and market-rate units are indistinguishable, the new community will look and feel like a typical Chicago neighborhood where families from a variety of backgrounds and income levels live and attend school together,” said Brad White, vice president of the project’s developer, Related Midwest. Heartland Housing and the Chicago Housing Authority are also a part of the development team.
Roosevelt Square phase I is currently 99 percent occupied. Construction on phase II began last July and is scheduled for completion in December 2008. Upon completion, Roosevelt Square will total 1,351 for-sale residences and 1,090 rental apartments.
Multifamily REIT to Exit Affordable Housing Sector
RICHMOND, OHIO—Associated Estates Realty Corp., a multifamily real estate investment trust (REIT), has announced plans to exit the affordable housing business.
The firm has a portfolio of 12 owned or partially owned Sec. 8 properties. Those assets have been put on the sales block.
Associated Estates manages 30 low-income housing tax credit (LIHTC), Sec. 8, and Sec. 202 affordable assets, totaling 4,816 units in Florida, Ohio, and Pennsylvania. Seven of those properties will be transferred to third-party management firms. The remaining 23 assets will be managed by their owners.
Associated Estates is left with a portfolio consisting of interests in more than 50 apartment communities, mostly in the Midwest.
“Our plan is to reposition our portfolio from the Midwest to faster-growing markets, such as the Baltimore/ Washington area, Virginia, Atlanta, and southeast Florida,” said Michael Lawson, vice president of investor relations for Associated Estates.
Project for Formerly Homeless Under Way in Manhattan
NEW YORK CITY—The New York City Department of Housing Preservation and Development, in partnership with nonprofit Common Ground, has begun work on what is expected to be the state’s first supportive housing development to obtain a silver rating from the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) program.
The project has been named The Lee in honor of Lee Larson, president of the Larson Family Foundation. The Lee, located on Manhattan’s Lower East Side, will consist of 263 units for the formerly homeless and those at risk of becoming homeless.
The project’s funding sources are: the Larson Family Foundation; taxexempt bonds from New York City’s Housing Development Corp.; the New York State Homeless Housing Assistance Corp.; the Federal Home Loan Bank of New York; Manhattan Borough President Scott Stringer; HSBC Bank USA; LIHTCs; and the city of New York.
Funding from the New York State Energy Research and Development Authority and funds raised by Common Ground are paying for the project’s green elements, which include a high-performance condensing boiler, drought-resistant landscaping, individual temperature control devices, water-saving fixtures, high-efficiency lighting, and a green roof.
On-site supportive services will be provided by the Center for Urban Community Services and The Door, an affiliate of University Settlement House. The Lee is expected to be complete by late 2008.
Seniors Project Gets Going in Fort Worth
FORT WORTH, TEXAS—Communidad Corp., a nonprofit Texas community housing development organization and affiliate of the Integrated Housing and Development family of companies, is building an affordable seniors project here. The 198-unit development broke ground last July and is slated to be complete by summer 2008.
HomeTowne at Matador Ranch, an $18.7 million project, will consist of oneand two-bedroom units within one garden- style, three-story building. Units will be reserved for seniors earning a maximum of 60 percent of the area median income (AMI).
Amenities will include a clubhouse, a fitness center, pools, a putting green, a walking trail, a seniors activity center, and social services operated by Communidad Corp.
Residents will also have access to carports and garages for an additional fee.
Tarrant County Housing Finance Corp. issued $10.9 million in tax-exempt bonds for the project. Red Capital Markets, Inc., provided $5.5 million of LIHTC equity. Matador Ranch will also receive $650,000 in HOME funds from the city of Fort Worth.
Collateral Finances Construction of Atlanta Project
ATLANTA—Collateral Real Estate Capital has provided a $3.5 million construction loan for the development of Columbia Crest Apartments, a 152-unit affordable complex here. The developer is Columbia Residential.
“This was a complex transaction in which HOPE VI money was combined with tax abatements, 9 percent LIHTCs, and a ground lease,” said Jane Z. Harrison, a vice president based in Collateral’s Atlanta office.
The $3.5 million forward loan was issued by Fannie Mae’s Multifamily Affordable Loan product and closed with an interest rate of 7.27 percent.
All units at Columbia Crest Apartments are contained in a single building on eight acres. The average unit size is 1,053 square feet. Amenities include a pool, a playground, a business center, and a laundry facility.
North Avenue Apartments Opens in Sacramento
SACRAMENTO, CALIF.—Simpson Housing Solutions and LINC Housing Corp. have teamed to build North Avenue Apartments in the Del Paso Heights neighborhood here. The grand opening was held in September.
The community offers 80 units in a mix of floor plans including 1,038-square-foot, three-bedroom units and townhome- style, two-bedroom units measuring 1,136 square feet each. All apartments are set aside for households with incomes maxing out at 60 percent of the AMI. Monthly rents range from $313 to $755 for two-bedroom units and from $355 to $865 for three-bedroom units.
Amenities include a multipurpose room, a pool, a spa, barbecue areas, a basketball court, a computer center, a fitness center, and more. A variety of on-site resident services and activities will be offered.
Financing included $10.2 million in equity from the sale of LIHTCs, $525,000 from the Sacramento Housing Redevelopment agency, and a $10.9 million construction loan from Wells Fargo Bank.