Steele Properties Tackles Affordable Housing Renos
- Jan 08, 2016
Denver—Steele Properties has acquired two affordable housing properties, Burlington Manor in Burlington, Colo., and Georgetown Square in Georgetown, Texas, with plans for large-scale property renovations at each community to begin early next year. The company’s total development cost of more than $14 million will help improve the quality of life for the communities’ residents.
Burlington Manor is a 54-unit Project Based Section 8 community serving low-income families in eastern Colorado. The project was awarded an allocation of 9 percent Low Income Housing Tax Credits (LIHTC) from the Colorado Housing and Finance Authority (CHFA) in July 2015, which resulted in more than $4.2 million of invested tax credit equity from PNC Bank to support the redevelopment. PNC also originated a $1.7 million Fannie Mae Permanent Loan for the project.
The transaction will result in about $3 million in property improvements, including significant interior upgrades in the kitchens and bathrooms, installation of A/C units as well as new amenities such as a playground, upgraded management office and a building expansion to include a community center, fitness facility, computer lab and expanded laundry room. The renovation will also focus on energy efficiency and ADA compliance upgrades.
For the second acquisition just outside of Austin, the 55-unit Project Based Section 8 community Georgetown Square, Steele was awarded LIHTC from the Texas Department of Housing and Community Affairs (TDHCA), resulting in about $4.7 million of invested tax credit equity from PNC Bank for the project. PNC also originated a $3.5 million Fannie Mae Permanent Loan for the project. The City of Georgetown is also supporting the project with a $450,000 loan. The company plans to do a $2.5 million renovation of the community, including interior and exterior upgrades to the kitchens and bathrooms, all new Energy Star-rated HVAC systems, LED lighting and a new playground area. The company will also add a covered pavilion with grills and picnic tables and a community building with a kitchen, new management office, laundry facility and a computer lab. Handicap accessible ramps and sidewalks will also be installed and several units will be converted to bring the community up to ADA compliance standards.
“We are very pleased to add these transactions to the growing number of successful projects we’ve completed with our longtime financing partner, PNC Bank. PNC has invested debt and equity in several of our redevelopments, and we are excited to continue our shared commitment to improve and preserve affordable housing opportunities across the country with them,” said Chad Asarch, a principal owner of Steele. “We are eager to begin the renovations at both properties early in the new year, and to furthering our track record of providing high-quality and affordable housing opportunities for families and individuals with limited means.”
Image courtesy of Monroe Group Ltd.