3 Communities Purchased, Preserved Affordable

Affordable and mixed-income housing preservation firm Jonathan Rose Cos. has acquired three multifamily properties and intends to preserve affordability at each. The apartment communities are Cambridge Towers in Detroit, Mich.; North Port Village in Port Huron, Mich.; and Shippan Place in Stamford, Conn. Each of the communities is rent subsidized under project-based Section 8 contracts.

At closing, Jonathan Rose Cos. renewed all existing contracts with the U.S. Department of Housing and Urban Development for another 20 years. It also added deed-restricted affordability extending from 30 to 40 years. This enabled affordability to be preserved at properties that have long been affordable communities serving families and low-income seniors in greater Detroit and Stamford.

The company intends to launch a complete rehabilitation of each property, including upgrades and updates to building systems, units and community spaces.

The deal comes at a crucial time for affordable multifamily. This year, some 29,000 private LIHTC apartments are set to hit the end of their compliance periods, representing 2.2 percent of affordable housing stock. Then, another 1.1 percent of inventory is set to meet the end of its extended-use period in 2025.

Property details

Situated at 19101 Evergreen Rd. in Detroit, Cambridge Towers is a 250-unit apartment building situated on 5.4 acres. It features controlled access and laundry facilities. The 14-story building was built in 1981, Yardi Matrix data shows.

Located at 2631 Krafft Rd. in Port Huron, North Port Village is a 251-unit multifamily community built on 16.5 acres. Common-area amenities include a community room and two laundry facilities, according to the same data. The two nine- and 10-story structures were completed in 1981.

With an address at 521 Shippan Ave. in Stamford, Shippan Place is a 148-unit rental community situated on 2 acres. It features controlled access and community room. The eight-story property was constructed in 1979, according to Yardi Matrix data.

Financing structure

The acquisitions of Cambridge Towers and North Port Village were undertaken in partnership with Huntington Community Impact Capital, which provided $23.4 million in direct Federal LIHTC equity and $10.8 million in construction financing. Capital One Bank, N.A. arranged $46.5 million of debt financing on behalf of the acquisition through its commercial lending arm.

The Shippan Place acquisition was completed in partnership with the Connecticut Housing Finance Authority, which provided a $35.8 million permanent loan, and KeyBank Community Development Lending and Investment, which furnished $22.9 million in direct Federal LIHTC equity and $16.6 million in construction financing to the project from KeyBank CDLI.