NHT-Enterprise Fall Successes
This fall has been a busy season for NHT-Enterprise! In September, NHT-Enterprise facilitated the preservation of New Heritage Village, a 250-apartmentt, 41-building scattered site portfolio in Toledo, Ohio. Originally assembled and purchased in 1980 by Toledo Housing Corporation (THC), the 100% Section 8 portfolio was in need of a significant rehabilitation. The recapitalization is financed with 9% low income housing tax credits, a HUD 221(d)(4) loan, and a HUD Mark to Market loan restructuring and debt assignment. A $12 million renovation will be completed in 2017.
In November, NHT-Enterprise and development partner H.J. Russell were selected for a 9% Low Income Housing Tax Credit allocation by the Georgia Department of Community Affairs (DCA) to undertake the recapitalization of Villages of Castleberry Hill (VCH) -- 166-units of mixed-income housing in southwest Atlanta. The Atlanta Housing Authority (AHA) will extend an existing ground lease as well as convert the 66 units of public housing to Section 8 PBRA. The $25 million transaction will be supported by federal and state tax credit equity, an FHA 221(d)(4) loan, and soft loan from AHA. NHT-Enterprise will serve as a co-developer and co-owner. NHT-Enterprise is excited to partner with H.J. Russell on this important project. Founded in 1952, H.J. Russell, is the largest minority-owned real-estate company in the United States and the nation's single largest MBE construction firm. Russell has developed and currently owns over 3,000 Section 8 apartments in Georgia.
Meanwhile, the D.C. Department of Housing and Community Development selected Liberty Place Apartments, a project being developed by NHT-Enterprise in partnership with IBF Development, to be funded from the 2016 RFP for 9% tax credits and Housing Production Trust Funds. The land for Liberty Place was donated to NHT-Enterprise as a way for a market-rate developer of a neighboring project to satisfy its affordable housing requirements. Liberty Place will be a 9-story building with a mix of studios, one bedrooms, and two bedroom units. The property will provide homes to 53 very low-income and 14 extremely low-income households. Of the 14 extremely low-income households, 7 apartments will be set aside as permanent supportive housing. A 2017 closing is anticipated.
Finally, NHT-Enterprise partnered with Dominium, a Minneapolis-based leading apartment development and management company, to acquire Castlewood Apartments, consisting of 96-units in Davenport, Iowa. The acquisition took place in December and the development team will now embark on completing a major renovation for Castlewood Apartments including a complete renovation of the clubhouse, new entry doors, new bathroom fixtures and cabinets, new interior doors and carpet, new kitchen appliances, flooring, bathroom accessories, a new playground, installation of a security camera system, new siding on townhome units, roof shingles, and re-striping of the parking lot along with new landscaping and monument entry sign. The renovation will be complete in late summer 2017. This is NHT-Enterprise's first joint venture with Dominium and our first property in Iowa.