Global Ministries Acquires Low-Income Senior Housing for $12M
- Mar 17, 2014
Global Ministries Fellowship (GMF) has purchased the 396-unit Serenity Towers in Memphis, which serves low-income elderly and disabled residents.
The purchase brings the portfolio owned and operated by GMF, a faith-based relief and development group, to 8,905 low-to-moderate-income multifamily units in 41 communities across the U.S. According to The Memphis Daily News, GMF purchased the low-income asset through affiliate GMF-Serenity Towers LLC, paying $12 million. It acquired the Class C property via a special warranty deed from Midtwon Memphis LLC, an affiliate of Florida-based Elevation Financial Group.
According to GMF’s website, the purchase was facilitated by tax-exempt 501(c)3 housing bonds issued by the Health, Educational and Housing Facility Board of Memphis on behalf of the buyer. The bonds, rated investment grade by Standard and Poor, were underwritten by Merchant Capital. Jones Walker acted as bond counsel, while Esquire served as FHA counsel and counsel to the Issuer, while Glanker Brown acted as corporate and owner counsel to GMF. The bank of New York Mellon has been appointed trustee.
GMF plans to engage in unspecified improvements at the 400 South Highland property, which underwent significant renovation and repositioning work in 2010, which included community area upgrades and building system enhancements. The 324,021-square-foot housing complex consists of two 10-story towers with 341-square-foot efficiencies and 494-square-foot one-bedroom apartments. Units feature energy-efficient fixtures and appliances. Community amenities include a fitness center, dining room, chapel, keyless FOB entry system, four laundry rooms, lounge areas on each floor and two flat screens TVs in the community room. To qualify for Serenity Towers, residents most earn less than 60 percent of the area median income. Rents do not exceed 30 percent of a tenant’s monthly income.
Through various affiliates and subsidiaries, GMF owns and operates seven other Memphis affordable housing communities such as the 440-unit River Trace and the 348-unit Arbors Hickory Ridge, purchased in mid-2012. (Details here)
Image courtesy of Global Ministries Fellowship