Greystone Closes $80M NC Deal
- Jan 26, 2018
Greystone Affordable Development has closed a $79.2 million transaction in Greensboro, N.C. through the HUD Rental Assistance Demonstration (RAD) program. The RAD deal offers access to capital for upgrades and increases operational efficiency, allowing the company to convert the financial structure of 645 affordable housing units across nine communities for the Greensboro Housing Authority.
“Navigating the RAD process can be incredibly challenging, but the long-term benefits—for both the owning entity and for the residents themselves—are well worth the effort,” said Tanya Eastwood, president of Greystone Affordable Development, in a prepared statement. “Public housing authorities such as Greensboro have seen a great benefit from utilizing the RAD program to allow for certainty in funding capital improvements to their properties.”
The RAD deal will go towards renovating the nine properties constructed between 1959 and 1996. The Greensboro Housing Authority will now have the cash infusion for deferred maintenance, estimated at $44,000 per unit, from new debt sources such as Tax-Exempt Bonds, Fannie Mae loans through PGIM Real Estate Finance and Low-Income Housing Tax Credit equity from Boston Financial Investment Management. The program converts public housing properties to Section 8, allowing housing agencies to leverage public and private debt and equity.
“Executing a RAD conversion can help extend the life of critical affordable housing, and the portfolio concept, which addresses multiple properties at once, is a model for preservation and for the success of public-private partnerships—all thankfully still accessible under the latest tax reform,” said Will Eckstein, senior vice president of Greystone Affordable Development, in prepared remarks.
Last week, through its Real Estate Advisors group, Greystone facilitated the $31.2 million sale of Juanita Nolasco Apartments, a 188-unit affordable community in Denver.
Image courtesy of Greystone