Elevation Financial Group, a provider of senior and multifamily affordable housing, has sold Serenity Apartments at Baton Rouge.

The 328-unit multifamily community sold for $15.5 million or $47,256/unit. Elevation purchased the property in August 2016 for $4 million or $12,195/unit. At the time of acquisition, almost half of the apartment units weren’t fit to live in and the grounds were in disrepair.

Just days before the deal closed, Baton Rouge experienced a flood that destroyed much of the surrounding area and left thousands homeless.

Elevation worked with local and other organizations to restore more than 160 units, roof replacement, extensive asphalt and concrete repair, exterior paint. Also, it reconstructed an additional 10 units that fire had destroyed.  More than $3.8 million was spent on restoring the property, and occupancy increased to 95 percent, from less than 50 percent.

" Serenity Apartments at Baton Rouge is a perfect example of what is possible in the affordable housing arena if the work is approached with conviction, creativity, tenacity and kindness," said Michael King, vice president of Elevation Financial Group.

Greystone, a commercial real estate lending company, has provided a $14,796,000 million Freddie Mac loan for the acquisition of SouthGlenn Place, a multifamily property located in Denver. The financing was originated by Ana Ramos of Greystone’s Los Angeles office, while both the seller and buyer were represented by Greystone Unique Apartment Group.

[caption id="attachment_9227" align="alignright" width="214"] SouthGlenn Place in Denver.[/caption]

SouthGlenn Place is a 135-unit, 74,575 square foot apartment complex witha significant value-add upside potential. The Freddie Mac Value Add loan program was used to enable the new owner to perform property upgrades and increase the value of the property over time, with the new owner budgeting approximately $1.6 million for upgrades. The non-recourse loan includes a 3-year term with the entire term being interest-only.

“Working closely with the Unique Apartment Group, we helped guide the buyer through the acquisitions process and to understand the benefits of the Freddie Mac Value Add program,” said Ramos. “It’s been a pleasure collaborating with the investment sales team on an end-to-end process from acquisition to financing.”

Middleburg, a development and management firm, completed its initial closing on Workforce Housing Fund and will contribute a previously acquired property, Vesta Derby Oaks to the fund.

The firm will continue to raise capital and add other family office and high net worth investors to the fund, which is expandable to $75 million, giving Middleburg the capacity to invest in around $250 million of real estate.

The fund's strategy is to acquire and substantially rehabilitate physically or operationally distressed assets (major deferred maintenance, poor management, high vacancy etc.) of existing multifamily workforce housing in the Southeastern and Mid-Atlantic regions of the U.S. After renovations, the fund will own modern, updated communities at a basis significantly below replacement cost, allowing Middleburg to rent high-quality apartment homes at levels affordable to working families.

The fund's first acquisition is a $30 million renovation of Vesta Derby, which was 15 percent occupied at the time of purchase. Many of the buildings were abandoned, creating significant blight and crime risk for the neighborhood. In addition to introducing professional management and improved security,

"The lack of supply of quality rental housing affordable to working families and individuals has reached crisis levels. Our investments through the Fund not only provide high quality rental housing, but achieve strong returns for our partners, who appreciate the social impact of community building," said Chris Finlay, Middleburg’s Managing Partner. "Vesta Derby is a great template for how we can create real transformational impact in the community, with far-reaching benefits."

Middleburg has received construction financing from Key Bank for Vesta Derby.

Churchill Stateside Group LLC, a real estate company, has closed on Springwood at Allen, a 92-unit new construction property that’s located in Allen, Texas.

CSG through its subsidiary Churchill Mortgage Investment provided a $12,894,500 insured loan under Department of Housing and Urban Development guidelines for the construction of multifamily properties. The Springwood is a single story/ranch style apartment property for seniors 62+ years of age. Construction began in December.

CSG offers more than 25 years of construction lending and loan administration capabilities which exceed $1.5 billion in all 50 states. “Our goal is to deliver outstanding service along with competitive rates, terms and loan proceeds,” said Keith Gloeckl, CEO of CSG. “We are especially proud of our quick turnaround times in processing construction draws for properties such as Springwood at Allen.”

CSG’s experienced team ensures that all aspects of the construction lending programs are effectively managed from application to servicing to meet the needs of clients for conventional and affordable multifamily housing loans.

“The depth of experience in our HUD underwriting team allowed us to meet the developer’s objectives of maximum loan proceeds and an early interest rate lock in a rising rate environment,” said Daniel Duda, vice president and national associate director of originations and acquisitions at CSG.