LEDG Capital has begun a $5.5 million renovation of an 84-unit affordable housing community in St. Louis.
The work will position Ridge Crest Apartments to remain affordable for the next 30 years, maintaining rent and income restrictions in accordance with federal regulations.
LEDG Capital’s 12-month renovation effort will update all apartments at the 60-year-old community, address the capital needs of its three buildings, improve amenities for residents, and strengthen security at the property. In addition, the project will continue to support an ongoing program of supportive services, after-school enrichment, and community events.
“We’re pleased to have had the opportunity to protect the long-term affordability of this community at a time so many households in the St. Louis area are struggling with high rent burdens,” said Matthew Kassel, senior director of development for LEDG Capital. “The much-needed capital improvements will improve the quality of life for residents, thanks to strong support from the Missouri Housing Development Commission (MHDC), the city of St. Louis, and the Industrial Development Authority of the city of St. Louis (IDA).”
The IDA provided private-activity bonds to support the renovation effort, while MHDC approved low-income housing tax credits and the Department of Housing and Urban Development approved a new project-based Section 8 contract.
Citi Community Capital served as the primary lender, providing construction and permanent-phase financing, according to Selina Mendoza, vice president at Citi.
Walker & Dunlop served as the equity partner in the transaction. "This financing marks a key step in our mission to support inclusive and sustainable communities," said Jennifer Erixon, senior managing director of affordable housing at Walker & Dunlop. "Ridge Crest Apartments is a true reflection of our dedication to offer affordable housing solutions that improve residents' quality of life while boosting the economic vitality of underserved areas.”
Interior upgrades will include new cabinets and countertops; vinyl plank flooring; kitchen and bathroom fixtures; appliances; interior paint; HVAC and water-heating systems; LED lighting fixtures; and mobility upgrades to five units.
The exterior scope of work will include reroofing all buildings; replacing gutters and downspouts; repairing siding and the brick façade; repairing aging water and waste lines; upgrading security cameras, vehicle gates, and fencing; installing a new playground; improving handicapped accessibility; and more.
Property management at Ridge Crest will be overseen by WinnResidential.
Langerman Construction is serving as general contractor, using plans from Benton Design Group. A significant portion of the subcontracting work will be awarded to local Minority and Women-Owned Business Enterprises, according to the team.
The start of work at Ridge Crest comes as LEDG Capital approaches the halfway mark in its $15 million renovation effort at another St. Louis multifamily property—Aboussie Pavilion Apartments, a 273-apartment, low-income, senior housing community that is the largest Section 8 location in the city.
LEDG Capital is a vertically integrated multifamily housing investment firm specializing in the acquisition, development, and operation of affordable and workforce housing. Founded in 2018, the company owns close to 8,000 units in 14 states.
