Greystone has secured $88.6 million in financing to rehabilitate 20 multifamily properties for low-income residents in Tennessee.
Greystone Affordable Housing Initiatives obtained a combination of public and private funding to rehab the properties, including tax-exempt bonds, low-income housing tax credits, USDA Rural Housing Service debt and long-term debt. Greystone worked with the Tennessee Housing Development Agency and the U.S. Department of Agriculture to secure the funding, according to a Tuesday news release.
The properties are owned and operated by Hallmark Cos., and are located in 16 Tennessee counties. They comprise 793 apartment homes and are classified as USDA Rural Development Section 515 properties.
"The preservation of aging RD Section 515 properties is a challenging segment of the affordable housing industry," Don Harris, the USDA Rural Development State Housing Program director, said in the release. "Thousands of properties face maturing mortgages in the next several years and are also at the end of their original restrictive-use periods."
Bonds for the project were issued by the Health, Educational and Housing Facilities Board of Sevier County, Tenn.
Stifel, Nicolaus was underwriter on the transaction. Ballard Spahr was legal counsel to Greystone.
