Greystone has provided a $30 million construction loan under the HUD 221(d)(4) program for the $78 million redevelopment of Council Towers Senior Apartment Homes, an age-restricted affordable housing community located in Miami Beach, FL. The transaction was originated by Jon Morales, Senior Vice President at Greystone on behalf of EHDOC Council Towers Limited Partnership.
Council Towers comprises two, 12-story buildings located on Collins Avenue (at 5th and 10th Streets) in Miami Beach, with a total of 250 one-bedroom units with rental subsidy provided by HUD under a Project-Based Section 8 contract. The substantial rehabilitation of the property, which was originally constructed under HUD’s Section 202 program 40 years ago, will upgrade, preserve and continue to provide quality affordable housing for low-income seniors (below 60% AMI) over age 62.
Sources of funding for this transformative project include the $30 million HUD-insured 221(d)4 loan from Greystone as well as Low-Income Tax Credit Equity, a Sellers’ Note, and Reserve Transfer. The non-recourse HUD-insured loan carries a 40-year term at a fixed, low interest rate.
“Preserving and providing high-quality affordable housing for seniors in Miami Beach is a priority for us, and orchestrating a Section 202 rehabilitation into a stunning community with unparalleled ocean views will deliver a needed respite for our residents,” said Steve Protulis, President and CEO, Elderly Housing Development and Operations Corporation (EHDOC). “We are grateful for all of our partners who made this transaction possible, including Stratford Capital for critical tax credit equity. We hope that the 4% LIHTC program continues to be a viable platform for preserving and creating affordable housing.”
The re-development team will be led by Roland J. Broussard, Vice President of Development for EHDOC, and Jason B. Duguay, Vice President of Stratford Capital Group Development (SCG), along with Larry Hecky, Chief Architect of The Hecky Group and Tom Morrissey, President of T. Morrissey Construction. The planned timeline for tenant-in-place renovation is projected to take up to 20 months. In addition to exterior façade and common area renovations, individual units will have new kitchens installed with energy-efficient appliances, new bathrooms, decorative lighting, new flooring, new windows and sliders, new roof, complete elevator modernizations, and paint, resulting in a complete refresh for the existing 250 homes.
“Frankly, transformations such as this are hard to come by, but working with a team like Stratford Capital and Greystone having expertise in affordable housing, tax credits, and HUD-insured financing created an opportunity to provide incredible residences for a community that truly deserves it,” added Mr. Broussard.
“Working with sponsors such as EHDOC is such a pleasure because their mission to deliver affordable housing is what drives them,” added Mr. Morales. “This transaction was highly complex, but the end result will be such a treasure to the community, and we are thrilled to have played a part in it. Greystone would also like to congratulate Melanie A. Ribeiro, the Interim President / CEO of EHDOC, who assumes her new role in September 2020. We look forward to working with her and her team on future affordable housing development opportunities.”