Senior Affordable Community Comes Online in Huntsville
Stratus Development LLC developed the 60-unit property, which is restricted to residents who are 55 or older and earning 60 percent of the area median income or less.
By Ariela Moraru
Lenox Park Apartments has opened its doors for low- to moderate-income seniors in Huntsville, Ala., at a time when demand for affordable senior housing is on the rise. Stratus Development LLC broke ground on the 60-unit development financed by BBVA Compass in February 2016.
Located at 2201 Old Blue Springs Road N.W., the community features one- and two-bedroom units with rents ranging from $327 to $603, significantly below market value. Propriety amenities include a computer center, picnic area with grills, gazebo, playground, community room and fitness area. The asset is two miles from Interstate 565 and Oakwood Village Shopping Center. The community is restricted to residents who are age 55 or older and earning 60 percent of the area median income or less, which translates to a maximum annual household income of $32,280 for a single occupant.
BBVA Compass provided most of the funding for Lenox Park. The company invested more than $8 million through its proprietary investment fund managed by Raymond James Tax Credit Funds, which purchased Low Income Housing Tax Credits.
Lenox Park comes online in Huntsville at a time when demand for affordable senior housing is high, as the first wave of Baby Boomers reach retirement. The number of people age 65 and older is expected to grow by more than 30 million in the next 20 years, many of whom will be economically insecure. Recent senior housing transactions in Alabama include AdCare’s acquisition of a $6 million assisted living facility.
The senior population in the Huntsville area is expected to grow 4.4 percent by 2020, more than the expected national growth rate of 3.9 percent, according to a market study for Lenox Park prepared by Novogradac & Co. in 2015. The study also found that two-thirds of seniors in the area are earning less than $30,000 annually.
Image courtesy of BBVA Compass