LEDG Capital is converting all the units at a Dallas apartment development into long-term affordable housing.
The firm announced that it has closed financing on the deal, which will convert 90 market-rate apartments to affordable housing for 30 years under a low-income housing tax credit land-use restrictive agreement. A Housing Assistance Payment contract protecting the remaining 23 units, which was due to expire in May, will be renewed for 20 years.
Under the new rent and income restrictions, the homes at Paradise Gardens Apartments will be affordable to households earning between 30% and 80% of the area median income.
In addition, LEDG will oversee a $5.2 million renovation to modernize the property over the course of 10 months. Built in the 1970s, the renovation of the three-story, concrete structure will focus on in-unit improvements and building envelope enhancements that directly benefit residents, according to the private company dedicated to preserving and creating affordable housing.
“We’re pleased to have the opportunity to protect and expand the affordable housing supply at an apartment community in Dallas’ rapidly gentrifying Lower Greenville neighborhood,” said Dmitry Gourkine, founding partner of LEDG Capital. “A bond allocation from the Dallas Housing Finance Corp. (DHFC) and an equity bridge loan from River City Affordable Housing were integral to the viability of this transaction, allowing LEDG to address the property’s deferred maintenance needs and improve the quality of life for residents for the long term.”
The city-run DHFC issued tax-exempt bonds to support the project conversion and renovation.
River City Affordable Housing, a nonprofit based in St. Louis, facilitated equity bridge financing to maximize financial resources and expand the scope of improvements and project affordability.
Walker & Dunlop served as the equity partner in the transaction. CBRE Group served as lender.
Langerman Construction is the general contractor for the work, using plans from Benton Design Group.
