$66M Package Purchase Breathes Life into Senior Housing

QUINCY, MA—A $66-million financing package has facilitated the acquisition of the 640-unit Quincy Point Apartments senior community here and the rehabilitation and reservation of a vast majority of the units as affordable for at least the next 30 years.

The deal was announced by New York City-basedGreystone, which provided a $52.5-million Fannie Mae loan as part of the $66-million financing package. Greystone worked in conjunction with MassHousing to provide a financing structure for 1000 Southern Artery Renewal Development Limited Partnership that included a $66-million MassHousing conduit construction loan with a 17-year Fannie Mae-backed permanent loan and the use of low-income housing tax credits to help finance the acquisition and rehabilitation of the property.

1000 Southern Artery Renewal Development Limited Partnership is a partnership between Quincy Point Congregational Church Homes Inc., and the National Foundation for Affordable Housing Solutions, Inc., which will oversee renovations and operations there.

As a result of the financing structure, a minimum of 90% of the apartments (576) will remain affordable for at least 30 years to residents earning at or below 60% of the area median income ($56,460 per household).

“This financing structure allowed the new owners to achieve their goals of both preserving the asset and maintaining the affordability of the units for many years to come,” says Jeff Englund, head of Greystone’s affordable housing lending group.

Renovations planned for the property include exterior improvements; the installation of Energy Star-rated windows and sliding doors; a new fire alarm control panel; high efficiency boilers and chillers; improved LED lighting throughout the property and upgrades to common areas and resident amenities. Improvements to individual units will include new kitchens with Energy Star-rated appliances; new high-efficiency baseboard heaters; new bathrooms with low-flow toilets and electrical upgrades, according to Greystone.

“This is a financing structure that has become the preferred means of financing the acquisition and rehabilitation of affordable properties throughout the country, and we were pleased to work with the borrower to make this transaction happen and extend the affordability for the seniors at Quincy Point for at least 30 years,” says Thomas Gleason, executive director, MassHousing.

SOURCE: Globe St