Denver-based real estate investment company Steele Properties has entered the Maine market with the acquisition of an eight-property affordable housing portfolio from Liberty Cos., based in Portland.
The properties include 170 units, 72% of which are project-based Sec. 8. The seven project-based Sec. 8 properties include the 16-unit Fairfield Family Apartments in Fairfield, the 24-unit Fort Halifax Commons in Winslow, the 10-unit MC Smith Apartments and the 15-unit Sherwood Apartments in Farmington, the 15-unit Pittsfield Gardens in Pittsfield, the 12-unit Richmond Senior Citizens Park in Richmond, and the 30-unit West Front Residences in Skowhegan. The remaining property is Green Acre Estates with 48 units in West Bath.
Rehabilitation costs are slated to be over $42,000 per unit spread across the portfolio. Renovations will vary by property and will include exterior and interior updates as well as energy-efficiency upgrades. Interior updates will include upgraded kitchens and baths, plumbing and electrical, paint, flooring, and doors. A dozen units across the portfolio also will be updated to be ADA accessible. Renovations are underway and expected to be completed by spring 2018.
The $21 million acquisition and renovation is financed with low-income housing tax credits allocated by MaineHousing and tax credit equity provided by PNC Real Estate. MaineHousing also provided tax-exempt bond and subordinate financing.
“Steele Properties is committed to ensuring everyone has access to safe, comfortable, and quality housing they can afford, especially as our country faces an affordable housing crisis,” says Hud Karshmer, principal of Steele Properties. “We thank our investment partners, MaineHousing and PNC Bank, that helped us protect and enhance 170 affordable housing units in Maine.”
In addition to the Maine portfolio, Steele Properties owns two additional New England developments—Berger Apartments in New Haven, Conn., and Casa Nueva Apartments in Hartford, Conn.
Monroe Group, an affordable housing property management company based in Denver, will continue to oversee the property management for the eight properties. The firm’s leadership founded Steele Properties in 2006 for the acquisition, rehab, and new construction of affordable multifamily housing.