Hunt Real Estate Capital provided a loan in the amount of $20 million to refinance an affordable senior housing property located in Montebello, California.
Beverly Towers is an age 62+ Section 8 LIHTC affordable multifamily property located at 1315 West Beverly Boulevard. The property has 189 units and is comprised of one, eight-story high rise building. Built in 1975, the property offers 133 one-bathroom efficiency units and 56 one-bedroom, one-bathroom apartments. Beverly Towers also contains leasing and social services coordinator offices on the first floor.
The property currently operates subject to a HUD Section 236(e)(2) use agreement that became effective in 2003 when the pre-existing Section 236 financing was retired. Terms of the agreement that the owner continues to agree to accept the Section 8 HAP Contract project-based rental assistance and continues to make the housing affordable to tenants whose income is 80 percent of median income or lower.
The borrower is Montebello Senior Housing, LP, a California limited partnership backed by key principal Stephen Doty. Doty is President of Doty-Burton Associates development corporation as well as the Chief Executive Officer of Living Opportunities Management Company (LOMCO), a full-service property management company that currently manages the property. Kent Davis serves as President of LOMCO and is responsible for refinancing acquisitions and property management opportunities.
“Steve and Kent are experienced owners, investors and developers of multifamily properties,” noted Aaron Wooler, Managing Director at Hunt Real Estate Capital. “Doty-Burton Associates was founded in 1967 as a developer of multifamily housing and has developed more than 5,000 units located in California and the Pacific Northwest area. In addition, through LOMCO, they currently manage 13 affordable housing communities providing 2,271 units for the elderly and disabled.”
The property has historically benefitted from a project-based Section 8 HAP Contract. The borrower is currently in the process of applying for a new 20-year HAP Contract in conjunction with this transaction.
“Steve and Kent are experienced HUD and affordable property management company with a long tenure in the local community,” added John McAlister, Managing Director at Hunt Real Estate Capital. “We were thrilled to partner with them on this transaction and play a part in providing quality affordable housing to seniors in the local community.”
Property amenities include on-site leasing and management offices, central laundry facility, community room area with kitchen, game room with pool table, ping-pong table and exercise equipment, library room with large screen TV and an outside community garden. Parking is provided via 76 self-serve surface spaces with four handicap van accessible spaces.
Beverly Tower is located in Los Angeles County, in the southwest portion of the Los Angeles MSA. The property is situated in the central portion of the city in a mixed-use area of commercial, industrial and residential uses. The community is conveniently located on West Beverly Boulevard with high visibility and easy access to local services and conveniences throughout Montebello.