|Dealmaker of the Day|
Greystone, New York, closed a $117 million transaction to allow WWJ LLC to acquire and rehabilitate a portfolio of 44 Georgia affordable housing apartment properties.
The USDA Rural Development Section 515 portfolio includes 1,362 units serving low-income households in 30 counties across the state. The Section 515 program provides subsidized loans to rural-market affordable housing developers.
WWJ LLC, an affiliate of Boyd Management, Columbia, S.C., expects a 12-month rehabilitation process.
"Affordable housing communities across the country are suffering from significant age and many are in drastic need of renovation and modernization," said Tanya Eastwood, managing director with Greystone’s Affordable Housing Initiatives group. "These properties risk being removed from the affordable housing stock unless there are collaborative efforts from all agencies and partners involved."
Eastwood said Greystone worked with national and state USDA Rural Development, the Athens Housing Authority, the Georgia Department of Community Affairs and Fannie Mae to secure the financing. The combination of public and private funding included:
• $26.9 million in Fannie Mae Delegated Underwriting and Servicing loans spread over 37 properties.
• Issuance of $47.2 million in multifamily private-activity tax-exempt bonds by the Athens Housing Authority.
• Purchase of 4 percent state and federal Low-Income Housing Tax Credits by a Community Affordable Housing Equity Corp. affiliate, generating $31.7 million in capital contributions.
• Assumption and subordination of $35.9 million of original USDA Rural Housing Service 515 debt. In addition, 98 percent of the units continued to receive Section 521 Rental Assistance by the USDA Rural Housing Service.
• Other funding sources included unspecified financial support of $2.2 million.