Greystone, a leading national commercial real estate finance company, provided a $17,529,400 construction loan under the HUD 221(d)(4) program for the $38.7 million redevelopment of an age-limited affordable housing community in West Palm Beach, Florida. The transaction was initiated 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 buildings with elevators, with a total of 200 studio and one-bedroom apartments. The substantial rehabilitation of the property, which was originally built in 1972 as part of HUD’s Section 236 program, will improve, preserve, and provide quality affordable housing for low-income seniors (under 60% AMI) and very low income (less than 28% AMI) over 62 years old. The project team worked with HUD and the West Palm Beach Housing Authority to secure project-based rental assistance for more than half of the residents who, although eligible, were not previously receiving this assistance.
Sources of funding for this transformational project include Greystone’s $17.5 million HUD-backed 221(d)(4) loan, as well as a 4% low-income tax credit and a secondary debt consisting of a State of Florida Apartment Incentive Loan (SAIL) and Florida Extreme Low Income Funds. The HUD non-recourse insured loan has a 40-year term at a low fixed rate.
The redevelopment team is comprised of Paul Ponte, principal at 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 renovation timeframe is expected to take up to 16 months. In addition to updating and rehabilitating the exterior facade, roof and common areas of each building as well as improving the grounds of the property, the 200 individual units will receive new energy-efficient appliances, new flooring, light fixtures and paint.
“We are inspired by clients like PHASE Housing, who share our deep commitment to providing affordable housing, which is in high demand in areas like Palm Beach County,” said Jon Morales. “Being able to secure the right funding for clients who are making a positive impact on lives by restoring and providing quality homes for so many people in our local communities is extremely important.
“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 made this transaction possible,” said Paul Ponte, director of the Borrowing Entity. “With affordable housing and HUD financing experts like Greystone on our team, we are able to provide our residents with a quality living experience in a great community.
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