Boston Capital Invests in Wisconsin Affordable Apartment Rehabs
- Dec 12, 2012
Lake Geneva, Wis.—A pair of Wisconsin affordable apartment communities, Gilbert Court Apartments in Elkhorn and Havenwood Apartments in Lake Geneva, will be rehabilitated, thanks to an investment by Boston Capital.
The two communities, collectively called Walworth Apartments, are about nine miles apart in southern Wisconsin’s Lake Geneva area, a resort region popular with residents of Milwaukee and Chicago. The rental properties serve families and seniors earning 60 percent or less of Area Median Income (AMI).
Boston Capital Finance provided equity investment in Walworth Apartments. It also delivered permanent loan financing, an 18-month, fixed-rate forward commitment that closed into the Boston Capital Long Term Mortgage Fund. Loan funding will occur upon construction completion and property stabilization. The loan will carry a 15-year term.
“Boston Capital has a long-standing relationship with WHPC, the developer,” Rich Mazzocchi, the company’s vice president of acquisitions, tells MHN. “WHPC is a strong development partner, and has a very successful track record with the preservation and rehabilitation of Section 8 properties in Wisconsin. In addition, the long-term project based Section 8 HAP contracts make these properties attractive from the perspective of the financing structure.”
Gilbert Court is a two-story elevator structure that includes 48 one-bedroom apartments. Havenwood Apartments is comprised of four two- and three-story structures, and includes 71 one-bedroom, 12 two-bedroom and eight three-bedroom units. When rehabbed, each development will feature a fitness center, computer room, community room, picnic area, storage lockers and library.
Included in the renovations will be the replacement of all mechanical systems, and installation of new roofs, siding, windows and doors. Apartments will be given new kitchen cabinets, countertops and appliances, as well as new bath vanities and lavatories. New windows and flooring will also be included.
“WHPC has owned these properties since 2001 and has maintained the properties very well,” Mazzocchi says. “The residents, many of whom have lived on site for several years, are very excited about the renovation project. A large part of the scope of the work consists of interior improvements.”
Walworth Apartments’ rehabilitation will create nearly 60 jobs in the area, and generate more than $5 million in local income.
“Boston Capital has built a reputation over the past 38 years of providing our developer partners the best in equity financing and on-time closings,” says Kevin P. Costello, executive vice president and director of institutional investing at Boston Capital. “Through the Boston Capital Long Term Mortgage Fund, our partners can satisfy their permanent financing needs at one convenient closing.”
Boston Capital has invested in nearly 3,000 units of affordable housing in the Badger State, with Walworth Apartments comprising 139 units of that total.