Boston Capital Invests in Virginia Affordable Housing
- Oct 24, 2011
Petersburg, Va.—Boston Capital has announced it is investing in the construction of a new 42-unit multifamily development in Petersburg, Va.
The Henry Williams Townhomes will feature six one- and two-story buildings on a nearly seven-acre parcel. Designed for residency by families, the buildings will include 18 two-bedroom and 24 three-bedroom homes.
“Henry Williams Townhomes greatly enhances the quality of affordable housing in Petersburg, Va., and provides homes for a largely underserved segment of the population,” Boston Capital vice-president of acquisitions Josh Gould tells MHN.
The population served will be those with incomes at or below 50 percent and 40 percent of Area Median Income (AMI), Gould reports.
“In addition to providing quality affordable housing for working families, the construction of Henry Williams Townhomes will have a positive social and economic impact on Petersburg‘s economy, by generating local revenue and creating jobs in the community,” Gould adds.
Among the amenities offered by the Henry Williams Townhomes will be a clubhouse with common room and kitchenette, a common laundry and a playground. Homes will feature central air conditioning and EnergyStar appliances, including dishwashers, in-unit washers and dryers. Also provided in homes will be ceiling fans, storage, front porches and rear patios. EarthCraft certified as “green,” the development is projected to utilize 30 percent less energy than other newly-constructed properties.
Boston Capital is excited about the development’s finance team, Gould says. “A conventional construction loan is being provided by Eagle Bank,” he says. “Virginia Housing Development Authority is providing debt financing through their Standard loan and REACH Virginia loan programs.
“The Virginia Department of Housing and Community Development is providing an amortizing HOME loan, and the balance of the development costs are being funded with LIHTC (Low Income Housing Tax Credit) equity provided by Boston Capital.”
Adds Jeff Goldstein, Boston Capital chief operating officer and director of real estate: “Boston Capital’s equity investment in Henry Williams Townhomes adds another outstanding property to our portfolio, while offering families in the Petersburg area a superior housing option in terms of unit design and size. The close proximity of area services, convenient retail and employment bases will contribute favorably to the desirability of the property.”
The general partners in the development are PCDC-I, LLC and MARG Rural, LLC. The community is being developed in partnership between T.M. Associates Inc. and Petersburg Community Development Corporation, Inc.
Challenges have been minimal. “We faced a few normal, minor issues that are typical in the due diligence process, such as timing and how the property will be assessed for taxes,” Gould says. “We benefited from our strong relationship with T.M. Associates, Inc., with whom we have a 30-year track record.”
Boston Capital, the largest owner/investor of apartment properties in the United States, has invested in approximately 12,000 units of affordable housing in Virginia.