By Laura Calugar
Greystone Affordable Development completed a $77.3 million multifamily transaction in South Carolina. The portfolio included 18 aged USDA Rural Development Section 515 properties totaling 762 units. WWJ LLC still owns and operates the assets and plans to preserve and upgrade the affordable housing communities. Greystone worked closely with USDA’s Rural Housing Service State and National Offices and the South Carolina State Housing Finance and Development Authority to coordinate and secure the financing needed to acquire and rehabilitate the at-risk apartments. The portfolio is spread across 15 counties and includes:
- Canterbury Apartments, 103 E. Canterbury Lane, Camden, S.C.
- Devonshire Apartments, 715 N. Farr Ave., Andrews, S.C.
- Evans Knoll Apartments, 701 W. Moultrie St., Winnsboro, S.C.
- Foxcreek Apartments, 260 Ravenell Drive, St. Stephen, S.C.
- Knolwood I Apartments, 265 Knolwood Apts. Drive, Lancaster, S.C.
- Knolwood II Apartments, 265 Knolwood Apts. Drive, Lancaster, S.C.
- Oakland Plantation Apartments, 5501 Edge Hill Road, Sumter, S.C.
- Pecan Grove Apartments, 71 Carwellyn Road, Abbeville, S.C.
- Ramblewood Apartments, 131 Pinewood Drive, Batesburg-Leesville, S.C.
- Sandy Bay Apartments, 628 Nelson Blvd., Kingstree, S.C.
- Shady Moss Townhomes, 1705 Shady Moss Court, Conway, S.C.
- Sparkleberry Hill Apartments, 100 Chalice Lane, Columbia, S.C.
- Tallwood I Apartments, 113 Tallwood Drive, Clinton, S.C.
- Tallwood II Apartments, 113 Tallwood Drive, Clinton, S.C.
- Water Oak Apartments, 303 E. Elizabeth St., Jefferson, S.C.
- West Pines Apartments, 113 Clyde Ave., Cheraw, S.C.
- Woodside Apartments, 210 Roland St., Bishopville, S.C.
- Yorktown Apartments, 111 Quinn Road, Clover, S.C.
“Marking our sixth such transaction with WWJ, affordable housing owners are clearly seeing the long-term benefits of a recapitalization and preservation initiative, with the ultimate beneficiaries being the residents who rely on this housing for their well-being,” said Greystone Affordable Development President Tanya Eastwood, in a prepared statement.
The financing comprised both public and private funding including:
- Tax-exempt bonds: Single issuance of $24.9 million in multifamily private-activity, tax-exempt bonds from the South Carolina State Housing Finance and Development Authority. TD Bank purchased the short-term bonds.
- LIHTC Equity: Purchase of 4 percent Federal LIHTCs by an affiliate of Community Affordable Housing Equity Corp., generating $14.1 million in capital contributions
- RHS 515 debt: Assumption and subordination of $15.4 million of original USDA Section 515 debt. Forty percent of the units will continue to receive Section 521 Rental Assistance provided by RHS and 26 percent will continue to receive Section 8 Rental Assistance provided by the U.S. Department of Housing and Urban Development.
- Senior debt of $20.3 million in USDA Section 538 loans provided by Greystone Servicing Corp. Inc.
- Excess reserves, project operations, investment income and deferred developer fees totaling $2.6 million
The rehabilitation plan is estimated to be completed within 18 months, during which no residents will be permanently displaced. Built between 1975 and 1989, renovations of the affordable apartments will average $30,000 per unit and will include both interior and exterior improvements.
In another recent deal, Greystone’s affordable housing group was also involved in the sale of Brentwood Apartments, a South Dakota multifamily community, for $3.3 million.
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