Two national nonprofit providers of affordable housing have expanded their relationship in support of their shared mission to preserve affordable housing through the purchase of Redland Arms Apartments in Florida City, Fla.
Based on their strong ties, The Partnership, Inc. (TPI), presented this off-market opportunity to The NHP Foundation (NHPF), and the two entities jointly secured financing for the acquisition.
The purchase was made possible by a $3.74 million acquisition bridge loan by Richmac Funding and an additional equity investment by TPI and NHPF, split 50/50. The bridge loan is anticipated to be taken out within the next two years by permanent Department of Housing and Urban Development Federal Housing Administration financing. The seller was Dominium.
Upgrades will be made to the property to bring it up to Americans with Disabilities Act compliance prior to the permanent financing being put in place. The low-income housing tax credit project, originally syndicated in 2002, is currently in its extended-use period.
The 66-unit property features a mix of one-, two-, and three-bedroom units in 10 residential buildings, which are restricted to residents earning no more than 33% and 60% of the area median income.
“The acquisition of Redland Arms helps expand NHPF’s Florida footprint and our relationship with TPI,” said NHPF president and CEO Richard Burns in a statement. “Importantly, it also marks our third investment in the state and our third partnership with TPI.”
Amenities at Redland Arms include a clubhouse (with a leasing office, a computer room, and an exercise room), a pool and a pool house, a covered barbecue area, a playground, a car-washing station, and a basketball half-court. Under new ownership, resident services will be expanded. These free services will be coordinated to include health-care screenings, a summer meal program for students, and social activities to foster a sense of community and encourage community pride.
John Corbett, TPI president and CEO, said, “In keeping with our other recent acquisitions in partnership with NHPF, Redland Arms represents a vital investment in the continued preservation of much-needed affordable housing.”