A 12-story senior apartment community in Miami Beach, Florida is undergoing a major redevelopment thanks in part to HUD construction financing arranged by Greystone. Originally built 40 years ago and operating with a Section 8 contract, the affordable community has 250 one-bedroom units. Its owner, Elderly Housing Development and Operations Corporation (EHDOC), and equity partner Stratford Capital, will begin a $78 million project to substantially rehabilitate the building. The 20-month project will include exterior façade and common area renovations, new kitchens and bathrooms in the units, a new roof, elevator modernizations and a paint refresh. All will be completed without displacing any tenants.
The financing package includes a 40-year, $30 million HUD loan originated by Greystone’s Jon Morales, 4% low-income tax credit equity arranged by Stratford Capital, a seller’s note and reserve transfer. In total, the project should cost around $78 million, or $312,000 per unit. That seems expensive, but talk about desirable real estate just a couple of blocks from the ocean.
