PGIM Real Estate provided fixed-rate HUD financing to Lincoln Avenue Capital for the acquisition and renovation of the South Forty Apartments, a 101-unit affordable seniors housing asset in Billings, Montana. Alex Viorst, executive director at PGIM Real Estate, arranged the $16.14 million loan under the FHA section 223(f) loan program.
The property is 100% subsidized by a Section 8 contract and also has a tax credit LURA on title restricting half of the units at 50% of area median income (AMI) and the other half at 60% AMI through 2069. Lincoln Avenue Capital, in a joint venture with Fairview Housing Partners, will complete an extensive rehabilitation of the property that will address deferred maintenance and revitalize the apartments and site amenities.
South Forty Apartments was originally constructed in 1987 and was last renovated in 2007. The scope of renovations will include new kitchens and baths, new windows throughout, upgrades to the clubhouse, new solar panels and accessibility repairs. The acquisition and renovation will also be funded with an equity investment and a bridge loan placed with PNC.
