Hunt Real Estate Capital announced today that it has provided an immediately funded Freddie Mac TAH Preservation Rehabilitation 4% TEL loan in the amount of $9.36 million to finance the acquisition and renovation of an affordable multifamily community located in Rome, Georgia.
Callier Forest Apartments is a 130-unit, mixed-income multifamily community located at 131 SE Dodd Boulevard. The property offers 26 one-bedroom units, 80 two-bedroom units, and 24 three-bedroom units contained in 17 two- and three-story, garden-style buildings. The property was built in 1981 and was renovated in 2004 with LIHTC equity.
The borrower is Envolve Communities (formerly LEDIC Realty Company), a Memphis-based owner and operator of affordable and workforce housing with 33,000 units located throughout the Southeast, Southwest, and Midwest.
“Envolve Communities is an experienced owner-operator with an extensive track record developing and managing affordable housing units throughout the nation,” commented Paul Weissman, Senior Managing Director and Head of Affordable Housing Finance at Hunt Real Estate Capital. “The property will undergo renovations using LIHTC equity, and all units will continue to benefit from a new, 20-year HAP Section 8 contract that will be effective at closing.”
Hunt Capital Partners sourced LIHTC equity for the project. The financing is a 17-year, fixed-rate Freddie Mac loan featuring a 35-year amortization schedule.
Planned improvements include new kitchen cabinets, flooring, paint, fixtures, and full bathroom renovations. The developer has estimated the total cost of the renovation at $7.3 million, or approximately $56,000 per unit.
“We are excited to complete a major rehabilitation at Callier Forest, which will enhance the lives of each our residents by providing them with a newly renovated home,” said Kea Calame, Senior Vice President, Investments at Envolve Communities. “We have a strong track record of occupied rehabilitations, and we are proud that we can afford our tenants the opportunity to remain living in their respective units during the renovations with minimal disruption.”
The rehabilitation will also involve the addition of a walking trail and picnic pavilion. Common area amenities at the property include a community room, computer lab/business center, central laundry facilities, library, on-site management, and a playground. Callier Forest also has a security guard on patrol and offers ample off-street parking.
“Envolve Communities has solid experience with the Freddie Mac Preservation Rehabilitation program, having closed three previous Freddie TEL immediate transactions,” added Leif Olsen, Assistant Vice President of Affordable Housing Originations at Hunt Real Estate Capital. “We were pleased to partner with Envolve on this deal to preserve quality affordable multifamily options for the residents of Rome. Callier Forest Apartments is 100% occupied and is in high demand with a waitlist of 87 households.”