Greystone Closes $33M Affordable Housing Transaction
- Aug 10, 2012
Greystone Affordable Housing Initiatives LLC (GAHI), a leading provider of affordable housing recapitalization and rehabilitation transaction management services, announced the closing of a $33 million multifamily transaction for a North Carolina portfolio of family- and elderly-designated properties. The USDA Rural Development portfolio encompasses 12 properties totaling 368 units located in nine counties throughout the rural region of western North Carolina, within 140 miles of Asheville.
The properties, developed by the HBREM LLC’s owners over thirty years ago, will undergo a five-month renovation not only to extend their useful life periods, but also to improve comfort and energy efficiency. Planned interior improvements include re-flooring and refurbishing kitchens with new cabinets and countertops, as well as replacing plumbing fixtures, light fixtures and doors.
The energy efficiency of units will be increased by installing insulated double-pane windows, energy-efficient hot water heaters and various environmentally-friendly appliances, as well as upgrading heating and air systems. Work done on the exterior will include re-roofing and installing new hardplank or vinyl siding.
Improvements will not be exclusive to units and some upgrades will be done on a community level, such as installing new children’s playground equipment, establishing picnic areas and touching up on landscaping.
Columbia-based Arnold Construction Corporation is the chosen general contractor, with Ross Deckard Architects P.A. acting as the firm in charge of design. According to a press release, Howel Linkous & Nettles LLC served as counselor to developer HBREM LLC, while Ramirez & Co. Inc. acted as financial advisor.
Funding includes both public and private sources and breaks down to $13.9 million in tax exempt bonds issued by the North Carolina Housing Finance Agency and $11.5 million in USDA RD Section 515 debt. Section 515 is a direct loan program directed towards owners looking to rehabilitate, build or buy rural rental housing.
A further $7 million in capital was raised by Community Affordable Housing Equity Corporation purchasing 4 percent LIHTC’s, a type of indirect federal subsidy used to finance the development of affordable housing. $447,000 in owner contribution was also secured.
Chart courtesy of National Low Income Housing Coalition.
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