R4 Capital announced that it is providing $6.7 million of tax credit equity to the adaptive reuse and conversion of two historic structures with new construction in Sullivan, Ind.
The Historic Sullivan Lofts will provide 40 units of affordable senior housing to the rural community.
The project by Flaherty & Collins Properties will consist of 13 individual addresses covering 4.2 acres. One parcel will be set aside for the creation of a park. The façade of the two historic properties built between the late 1800s and 1930s will be restored to their period aesthetic with interiors modernized.
Historic Sullivan Lofts will house residents 55 years and older earning up to 60% of the area median income and will offer a full suite of social services at no cost to residents, including health screenings, holiday events, physical therapy, medication delivery, and home healthcare. Free transportation to off-site services will be provided by Indiana-based Ride Solutions. Other services include clothing and food pantry referrals, financial literacy and credit counseling, computer training, and exercise and nutrition classes.
In addition to the 9% low-income housing and historic tax credit equity provided by R4 Capital, funding was provided by Salin Bank and the Indiana Housing and Community Development Authority.
“Rural communities like Sullivan are looking for ways to improve quality of life with job opportunities and affordable housing availability,” said Paul Connolly, executive vice president at R4 Capital, a national tax credit syndicator, lender, and asset manager. “Partnering again with the developer, Flaherty & Collins, we are able to provide private financing to assist mayor (Clint) Lamb in transforming his city.”
Officials said the effort coincides with the mayor’s neighborhood revitalization initiatives.
R4 Capital officials said they have closed or are in the process of closing six transactions in Indiana. Historic Sullivan Lofts is the second closed transaction with Indianapolis-based Flaherty & Collins with another in the process of closing.