Greystone provided a $17,529,400 construction loan under the HUD 221(d)(4) program for the $38.7 million redevelopment of an age-restricted affordable housing community located in West Palm Beach, Florida. The transaction was originated by Jon Morales, Senior Vice President at Greystone, on behalf of PHASE Housing Corporation, Inc.
Located in Palm Beach County, Christian Manor Apartments consists of four, three-story elevator buildings, with a total of 200 studio and one-bedroom units. The substantial rehabilitation of the property, which was originally constructed in 1972 under HUD’s Section 236 program, will upgrade, preserve, and provide quality affordable housing for low-income (below 60% AMI) and extremely low-income seniors (below 28% AMI) over 62 years of age. The project team worked with HUD and the West Palm Beach Housing Authority to obtain project-based rental assistance for over half of the residents who, although eligible, were previously not receiving this support.
Funding sources for this transformative project include the $17.5 million HUD-insured 221(d)(4) loan from Greystone, as well as 4% Low-Income Tax Credit Equity, and secondary debt consisting of a Florida State Apartment Incentive Loan (SAIL) and Florida Extremely Low-Income funds. The non-recourse HUD-insured loan carries a 40-year term at a low, fixed rate.
The redevelopment team consists of Paul Ponte, Principal with PHASE Housing Corporation, Inc., Jason B. Duguay, Senior Vice President of SCG Development, Rhett Holmes, President, and Steve Brooks, Chief Financial Officer, of IDP Properties. The timeline for the renovation is projected to take up to 16 months. In addition to updating and rehabilitating each building’s exterior façade, roof and common areas as well as upgrading the property grounds, all 200 individual units will receive new energy-efficient appliances, new flooring, fixtures, and paint.
“We’re inspired by clients like PHASE Housing, who share our deep commitment to delivering affordable housing, which is in high demand in areas like Palm Beach County,” said Jon Morales. “It’s incredibly meaningful to be able to secure the right financing for clients who are positively impacting lives by restoring and providing quality housing for so many in our local communities.”
“Preserving and providing quality affordable housing for seniors in West Palm Beach is a priority for us and we are grateful to all of our partners who have made this transaction possible,” said Paul Ponte, principal of the borrowing entity. “With affordable housing and HUD financing experts like Greystone on our team, we’re able to provide our residents a quality living experience in a great community.”