Birmingham, Ala.—Steele Properties acquired and plans to rehabilitate Valley Brook Apartments, an affordable community located at 2969 Gallant Drive in Birmingham, Ala. for $24.8 million. Renovations will begin in April 2017 and are set for completion in spring 2018. The property will be managed by Monroe Group.
The 240-unit community offers one-, two- and three-bedroom units ranging from 750 to 1,050 square feet, according to Yardi Matrix. Of the total unit amount, 213 apartments are affordable.
Valley Brook will receive $47,000 per unit in hard cost rehabilitation as part of the acquisition. The renovations will cover exterior and interior work, including building a new community center with a computer lab, laundry facilities and playground; replacing the vinyl siding with durable siding systems; the installation of new roofs; the addition of hard wired smoke and carbon monoxide detectors; a new key fob controlled vehicular access gate with security guard shack; a new security camera system and improved lighting. Interior upgrades will include new electrical, paint, flooring and doors; the addition of energy efficient lighting and water saving features; new countertops, cabinets and Energy Star appliances in the kitchens and new vanities, tubs and fixtures in the bathrooms. Full ADA conversions will be completed on 12 of the units.
The project is financed with Low Income Housing Tax Credits and Tax-Exempt Bonds provided by the Alabama Housing Finance Authority. The project is funded by the sale of the Tax-Exempt Bond proceeds underwritten by R4 Capital and Tax Credit equity provided by PNC Bank.
“We are proud to be preserving this affordable housing community that is in dire need of renovation,” David Asarch, partner & chief investment officer of Steele Properties, told Multi-Housing News. “Our entire development, construction, operations, compliance, finance and HR teams are working together to rehabilitate Valley Brook and make it a place where the residents are proud to call home.”
Image courtesy of Yardi Matrix