Ground Broken on $10M Affordable Housing Project
- Sep 11, 2012
Cincinnati is growing, with investments being made, thousands of jobs being created, the unemployment rate going down and the population growing. And with confidence in the housing market still low, especially in the suburbs, apartment operators are very, very happy these days.
Marcus & Millichap is predicting that apartment vacancy in Cincinnati will fall to 4.7 percent in 2012, while rents are expected to increase by 2.8 percent. Developers are trying to take advantage of the solid demand for apartments. Some of them are making plans; others are already breaking ground.
Jonesboro Investments Corp. is one such developer. The company broke ground on Sept. 5 on a $10.4 million multifamily affordable housing project in Florence, Ky. Representatives from the Northern Kentucky Community Action Commission, the Kentucky Housing Corp., U.S. Bank and Jonesboro Investments Corp., along with legislators and local officials, all took part in the groundbreaking ceremony held at 10285 Memory Lane, near the intersection of Frank Duke Boulevard and Dixie Highway.
Magnolia Glen Apartments is a 60-unit (45 two-bedroom and 15 one-bedroom), five-building development. It will open a year from now, in September 2013, and will be available at rents ranging from $550 to $640 per month. The complex will feature Energy Star appliances and lighting and will have a clubhouse, business center and computer facilities, central laundry and on-site management.
The project is supported by a public-private tax credit financing partnership. The Kentucky Housing Corp. administers the Affordable Housing Tax Credit Program in the state of Kentucky. It allocated tax credits to the project to generate the capital needed to subsidize the development, thus making it possible for the owner to rent the units at below-market rates. U.S. Bank provided both debt and equity for the project. Magnolia Glen Apartments has received a $7 million construction loan and a $9.8 million Affordable Housing Tax Credit equity investment through a subsidiary of U.S. Bank, the U.S. Bancorp Community Development Corp.
Charts courtesy of Marcus&Millichap.