Steele Acquires AL Affordable Apartments for $23M
The company plans to renovate the 200-unit Summit Ridge Apartments in Birmingham, giving the community new roofs, exterior doors, siding repairs and attic insulation for increased energy efficiency.
By Jeffrey Steele
Denver-based national real estate investment and development company Steele Properties has acquired Summit Ridge Apartments in Birmingham, Ala. The company, which specializes in affordable family and senior and disabled housing, purchased the 200-unit project-based Section 8 affordable community $22.8 million.
Located at 149 Haversham Drive in Center Point, 15 miles northeast of downtown Birmingham, the 43-year-old community is comprised of two dozen two-story, walk-up, garden-style buildings. Those structures feature a blend of one-, two- and three-bedroom apartments and townhomes on 19.4 acres.
Second this year
The second Birmingham property to be acquired by Steele Properties in 2017, Summit Ridge will benefit from more than $37,000 per unit in hard cost rehabilitation. The work encompasses both exterior and interior rehabilitation. Buildings will be given new roofs, exterior doors, siding repairs and attic insulation for increased energy efficiency.
Also part of the renovation will be the addition of hard-wired smoke and carbon monoxide detectors and community-wide improved lighting. A new management and community center, pavilion and picnic area, laundry facility and centrally-located playground will be among the fresh enhancements to the property.
The improvements to be added to the apartment home interiors include upgraded plumbing and electrical, paint, flooring and doors. Other additions include upgraded energy-efficient lighting fixtures and water-saving fixtures. New cabinets, countertops and Energy Star appliances including a vent hood/microwave will be installed in kitchens. Bathrooms will benefit from new vanities, tub surrounds and fixtures. Two of the community’s units will receive full ADA conversions.
“Steele Properties is delighted to partner with the Department of Housing and Urban Development, Alabama Housing Finance Authority, PNC Bank and Citi Community Capital to successfully complete this significant rehabilitation project,” said David Asarch, Steele Properties partner. “Our mission is to preserve and improve affordable housing opportunities. We specialize in significantly improving older project-based Section 8 properties to become safe and quality housing for the residents.”
The community is conveniently located near several Birmingham employers and attractions, including Birmingham-Shuttlesworth International Airport, Ruffner Mountain Nature Preserve and Jefferson State Community College.
The project is financed with low-income housing tax credits allocated by the Alabama Housing Finance Authority (AHFA) and tax-exempt bonds issued by AHFA. The tax-exempt bonds were underwritten by Citi Community Capital. The project is funded through permanent FHA financing provided by PNC Bank under the 223(f) PILOT program and tax credit equity furnished by PNC Bank.
In March, Steele Properties purchased Valley Brook Apartments, a nearby 240-unit project-based Section 8 family property. Valley Brook Apartments is currently being enhanced via an ambitious tax credit rehabilitation. Monroe Group, which is now managing Valley Brook, will also oversee property management at Summit Ridge.