Wesley Housing Rehabs Project with Mix of Apartment Sizes

November 10, 2008
By Joseph P. Poduska

Wesley Housing Development Corporation has begun the rehabilitation of Beverly Park Apartments in Alexandria, Va., a market-rate rental project which in recent years had fallen into disrepair due to deferred maintenance.

Originally built in the 1940s, Beverly Park has three garden style buildings and originally contained 41 apartments. The renovation will reduce the number of units to 33 and reconfigure the mix from all one-bedroom apartments to seven studio, 18 one-bedroom, six two-bedroom, and two three-bedroom units.

The Virginia Housing Development Authority (VHDA) provided $3,505,000 in financing from its multifamily loan programs at a blended rate of 3.17 percent, allocating $1.5 million at 5.05 percent and $2 million at 2.55 percent. The loan came from internal funds generated by VHDA and will have a term of 35 years. VHDA also provided construction financing for the $8.6 million project.

Housing Tax Credits
Syndicator RBC Capital Markets provided $2,733,951 in equity from an allocation of 9 percent low-income housing tax credits. The project benefited from the 9 percent minimum tax credit rate set by the Housing and Economic Recovery Act (HERA).

The city of Alexandria initially had provided $1.5 million in bridge financing for the project but later raised its investment to a $2 million permanent loan to complete the financing and provide the gap funding needed for feasibility. The remainder of the financing comes from about $361,000 in a deferred developer fee.

Wesley Housing purchased the property in 2005 with financial assistance from the city, Housing Partnership Network, and United Bank.

Wesley Housing will meet the EarthCraft certification for environmentally green construction. The rehabilitation will include new windows, entrances, and full interior renovations. The development will transition to housing affordable to residents with incomes under 50 percent and 60 percent of area median income.
© 2008  Thomson West