Greystone Closes on $117M Portfolio for Affordable Housing
- Sep 18, 2013
WWJ, L.L.C. an affiliate of Boyd Management, Inc., has acquired the aged USDA Rural Development Section 515 portfolio, with Greystone closing on the $117 million multi-family transaction to allow for major rehabilitation to preserve rural housing communities in the state of Georgia.
The financing will be used towards the acquisition and rehabilitation of 44 affordable housing properties, consisting of 1,362 units that serve low-income households in 30 counties across the state.
Greystone worked hand-in-hand with National and State USDA Rural Development, the Athens Housing Authority Georgia Department of Community Affairs, and Fannie Mae to coordinate and secure the financing needed to acquire and rehabilitate the portfolio.
“Affordable housing communities across the country are suffering from significant age and many are in drastic need of renovation and modernization,” Tanya Eastwood, managing director for Greystone’s Affordable Housing Initiatives group, said in a company statement. “This combined with the ever increasing state and federal budget restrictions has made preservation of existing affordable housing stock even more of a challenge. These properties risk being removed from the affordable housing stock unless there are collaborative efforts from all agencies and partners involved.”
The rehabilitation will consist of s new flooring, energy efficient appliances, hot water heaters, upgraded HVAC, kitchen cabinets and countertops, as well as fixture upgrades. Electrical improvements will include the replacement of all interior and exterior light fixtures, new GFI outlets and new smoke detectors.
Planned exterior improvements include new insulated double-pane windows, doors, gutters, siding and a new roof system. Landscape enhancements will also be implemented.
The financing involved in the transaction included $26.9 million in Fannie Mae DUS loans spread over 37 properties, issuance of more than $47.2 million in multi-family private activity tax exempt bonds by the Athens Housing Authority, purchase of four percent state and federal LIHTCs by a Community Affordable Housing Equity Corporation affiliate, and assumption and subordination of over $35.9 million of original USDA RHS 515 debt.
“The financing structure of this transaction truly shows the dedication and out-of-the-box thinking of an extraordinary group of people,” said Jeff Englund, head of Greystone’s Affordable Housing lending group. “Even though we were thrown a few curve balls, it was the hard work and dedication of many people, especially those at Fannie Mae and the USDA that allowed us to close this transaction and ultimately make a positive impact on the lives of the residents that call these Georgia properties ‘home’.”
The rehabilitation is expected to be completed within 12 months.