Greystone Secures $117M for Affordable Rehab
- Sep 18, 2013
Atlanta—WWJ LLC, an affiliate of Boyd Management Inc., has acquired a portfolio of 44 affordable housing properties in the state of Georgia. The aged USDA Rural Development Section 515 portfolio consists of 1,362 units that serve low-income households in 30 counties, and the new owners plan to rehab the properties over the next 12 months.
The rehabilitation plan consists of substantial improvements for all apartments within the 44 properties. Interior improvements will include new flooring, energy efficient appliances, hot water heaters, upgraded HVAC, kitchen cabinets and countertops, as well as fixture upgrades. Electrical improvements will include the replacement of all interior and exterior light fixtures, new GFI outlets and new smoke detectors.
Planned exterior improvements include new insulated double-pane windows, doors, gutters, siding and a new roof system. More than $34 million will be spent in construction costs, the majority of which will be spent directly with Georgia contractors on physical goods and improvements, according to WWJ.
Financing for the project is a complex mix of public and private sources totaling about $117 million. The deal was overseen by affordable housing specialist Greystone, working with National and State USDA Rural Development, the Athens Housing Authority, Georgia Department of Community Affairs and Fannie Mae to secure the funds necessary to acquire and rehabilitate the portfolio.
Financing included $26.9 million in Fannie Mae DUS loans spread over 37 properties (six consolidations), and the issuance of over $47.2 million in multifamily private activity tax-exempt bonds by the Athens Housing Authority. The purchase of 4 percent State and Federal LIHTCs by a Community Affordable Housing Equity Corp. affiliate generated over $31.7 million in capital contributions. There was also assumption and subordination of over $35.9 million of original USDA RHS 515 debt. The Section 515 program is a direct loan program designed to provide subsidized loans to developers of affordable housing in rural markets.