Steele Properties has announced the $31 million acquisition and rehabilitation of Hillvale Apartments, a project-based Section 8 property in St. Louis.
The 146-unit development will receive more than $100,000 per unit in hard cost renovations as part of the acquisition, with each apartment receiving full flooring replacement, full cabinet and countertop replacement, and updated energy-efficient kitchen appliances. Each unit will also receive new bathroom fixtures, toilets, shower surrounds, and energy-efficient LED lighting as well as significant repairs to existing drywall and new painting throughout.
“Hillvale is long overdue for a substantial rehabilitation, and we look forward to providing clean, decent, and safe housing for the residents here,” said Hud Karshmer, principal of Steele Properties. “In partnership with our sister company, Monroe Group, we are ready to provide the Hillvale community with professional property management and resident services.”
The project is financed with 4% low-income housing tax credits awarded by the Missouri Housing Development Commission (MHDC), tax-exempt bonds issued by the Industrial Development Authority of the city of St. Louis and underwritten by Stifel, construction and permanent financing provided by MHDC and the Affordable Housing Commission of the city of St. Louis, permanent financing provided by PNC through a Section 221(d) Federal Housing Administration-insured mortgage loan, federal housing tax credit equity provided by CREA, and state tax credit equity provided by Sugar Creek Capital.
Built in 1966, Hillvale consists of 11 two-story buildings and is located 7 miles northwest of downtown St. Louis.
Steele is also planning other improvements at the property, including replacing the roof, updating the common areas, and making security upgrades. A new community building will be home to leasing offices, a resident service coordinator office, a laundry facility, and a community kitchen.
