Cleveland, Ohio, Sept. 02, 2021 (GLOBE NEWSWIRE) -- The Millennia Companies® (Millennia) has closed on $52 million in financing for the substantial rehabilitation of 175 units of affordable housing for families at Cordoba Courts Apartments in Opa-locka, Florida.
With construction costs totaling more than $20 million, the rehabilitation includes an extensive renovation of the apartment development, which is comprised of eight residential buildings, community spaces, and a swimming pool.
Having undergone approximately $2 million in capital improvements since Millennia’s acquisition in 2016, the property needs considerable rehabilitation and redevelopment to improve its aesthetics and functionality. The construction project addresses necessary repairs and replacements and will extend the physical life of the apartment development into the foreseeable future, thereby preserving affordable housing.
The rehabilitation includes new kitchens, bathrooms, flooring, painting, finishes, windows, HVAC systems and building roofs; re-done exteriors; a new laundry room; and additions to the community center, which will include an exercise facility, a computer room, and outdoor space. Additionally, the plan also calls for enhancements to security features and landscaping. Inside the apartments, crews will install energy-efficient appliances and use eco-friendly materials for countertops and cabinets. In all, the scope of work entails over $115,000 in renovation costs per apartment, financed through the 4% Low-Income Housing Tax Credit (LIHTC) program.
"Affordable housing is critical, and the supply is diminishing while the need is increasing,” said Frank T. Sinito, Founder and Chief Executive Officer, Millennia. “Rehabilitating apartment developments that have experienced decline over time is essential, and we are proud of our mission to not only provide residents with a quality home, but also a community enriched with services."
In fact, according to the National Low Income Housing Coalition, there is a national shortage of more than seven million affordable homes for the nation's 11 million plus extremely low-income families. Since 2004, Millennia Housing Development, Ltd. has preserved more than 11,500 units of affordable housing in collaboration with housing and finance partners.
“Red Stone is proud to be Millennia's financial partner in their preservation of this community. We look forward to the upcoming substantial renovation planned for the benefit of the tenants and cannot wait to see the final result,” said Brian Renzi, Managing Director, Red Stone Tax Exempt Funding.
Millennia anticipates that construction will begin in the coming weeks and take 20 months to complete. The relocation plan involves the renovation of vacant units first and the onsite relocation of households as construction is completed in phases. Residents pay 30 percent of their income toward rent, and rent will remain affordable for years to come as it is subsidized for at least 20 years by a federal Project-Based Section 8 contract administered by the United States Department of Housing and Urban Development (HUD).
The following partners provided financing and resources for this transaction: Red Stone Tax Exempt Funding (lender), Stratford Capital Group (syndicator), Florida Housing Finance Corporation (LIHTC issuer), Housing Finance Authority of Miami-Dade County (Bond Issuer), HUD Southeast and Jacksonville Offices, and the City of Opa-locka. Also engaged in this project are NEI General Contracting (general contractor), The Architectural Team and Dimit Architects (architectural firms), Millennia Housing Development, Ltd. (developer), and Millennia Housing Management, Ltd. (management agent).
About The Millennia Companies®
In 1995, Frank T. Sinito founded The Millennia Companies®, a high-performance business enterprise with a strong sense of mission to enrich lives. Millennia operates in a closely aligned set of sectors including real estate development and property management, and its portfolio includes more than 275 multifamily residential communities in 26 states - over 100 apartment developments have undergone transformative rehabilitations. In 2020, Affordable Housing Finance ranked Millennia #1 on the list of Top 10 Companies Completing Substantial Rehabilitations and #4 on the list of Top 50 Affordable Housing Owners; and Multi-Housing News ranked Millennia #18 on the list of Top Multifamily Development Firms.
Attachments
