Miami Beach Senior Housing to Undergo $78M Rehab
- Sep 01, 2020
Council Towers Senior Apartment Homes, a two-building, 250-unit, age-restricted affordable housing community in Miami Beach, Fla., will undergo a $78 million redevelopment thanks to a financing package including a $30 million construction loan under the HUD 221(d)(4) program provided by Greystone.
The HUD-insured loan was originated by Greystone Senior Vice President Jon Morales on behalf of the borrower, EHDOC Council Towers Limited Partnership. The non-recourse HUD-insured loan carries a 40-year term at a fixed, low-interest rate. Other funding sources include Low-Income Tax Credit Equity provided by Stratford Capital Group, a Sellers’ Note and Reserve Transfer.
The property, which consists of two, 12-story buildings on Collins Avenue at 5th and 10th streets, is owned and managed by Elderly Housing Development and Operations Corp. (EHDOC). The redevelopment team will be led by EHDOC’s Vice President of Development Roland Broussard and Stratford Capital Group’s Vice President Jason Duguay, along with Chief Architect of The Hecky Group Larry Hecky, and President of T. Morrissey Construction Tom Morrissey.
The substantial rehabilitation of the property, which was constructed 40 years ago under HUD’s Section 202 program, will take up to 20 months and tenants will remain in place during the renovations. The buildings have one-bedroom units that have rent subsidies provided by HUD under a project-based Section 8 contract.
The redevelopment will upgrade, preserve and continue to provide quality affordable housing for low-income seniors over age 62 with AMI below 60 percent. In addition to exterior façade and common area renovations, individual units will have new kitchens installed with energy-efficient appliances, new bathrooms, decorative lighting, new flooring, new windows and sliders. The buildings will get new roofs, complete elevator modernizations and paint jobs.
Morales described the transaction as “highly complex” and Broussard also noted in a prepared statement that these kinds of renovations are difficult to fund. Broussard thanked SCG and Greystone for their expertise in affordable housing, tax credits and HUD-insured financing to create the opportunity for the redevelopment. Steve Protulis, president & CEO of EHDOC, who is turning over the reins of the organization to Melanie Ribeiro this month, also credited the financing partners for helping EHDOC to preserve and provide high-quality housing for the residents.
In December, Morales and Greystone Managing Director Rob Meehan secured a $68.5 million refinancing package for Capital Apartments, a 278-unit, affordable senior housing community in Manhattan for Fifty First Capitol Associates LLC. The financing included a 10-year Fannie Mae loan with a 30-year amortization period and 3.16 percent interest rate. Located at 840 Eighth Ave., the property has 250 age-restricted Section 8 units and 28 non-age restricted units.