SVN AFFORDABLE | Levental Realty has brokered the sale of City Views at Rosa Burney Park in Atlanta, GA for $25 million. The company worked on behalf of seller Reliant Development Group. The 180-unit affordable community is covered by a 154-unit Section 8 HAP contract and was rehabbed in 2002 with Low-Income Housing Tax Credits. Built in 1972, the property is comprised of a 10-story tower and 15 garden-style buildings. Situated on 7.6 acres, it is located near downtown Atlanta in the revitalizing Mechanicsville neighborhood.
SVN AFFORDABLE Managing Director Gene Levental led the transaction. “It was a privilege to represent the seller’s interest in such an important transaction given its premium location and potential to be converted to market rate housing. The seller wanted assurance that a competitive marketing and bid process could be accomplished among reputed affordable developers committed to extending the long-term affordability of the project while injecting significant capital to improve the quality of housing for residents in the decades to come. After generating 23 offers and narrowing the buyer pool to three preferred developers, the seller had a difficult decision to make and ultimately chose the Jonathan Rose, Columbia Residential, and SUMMECH Community Development Corp partnership as the perfect fit. It was a complicated transaction with many economic, regulatory, and political hurdles to overcome, yet the team lead by Jonathan Rose were able to structure a deal and capital stack that allowed both buyer and seller to get the deal done for which they bargained.”
The buyer is a partnership between Jonathan Rose Cos., Columbia Residential and local nonprofit SUMMECH Community Development Corp. A $16.5 million renovation of the property is planned and will include new roofs, windows, elevators, and improved ADA accessibility. Renovations to the community space will include a fitness center, craft room, package room, upgraded laundry facilities, and a computer learning center. Apartment units will be renovated with new kitchens and bathrooms, Energy-Star appliances, low-flow plumbing fixtures and LED light fixtures.
As part of the acquisition and redevelopment, the current HAP contract will be extended for 20 years and the affordability of all units will be preserved under new the LIHTC income-averaging set-aside program for 30 years.
About SVN AFFORDABLE | Levental Realty
SVN AFFORDABLE | Levental Realty is a nationally recognized leader in the niche market of Affordable Housing brokerage focusing solely on valuing, marketing and selling Project-Based Section 8 and Section 42 housing through their national platform and proprietary database. Our financial, regulatory and statutory expertise, paired with our strategic alliance of industry professionals, allows us to successfully identify a customized disposition strategy and transaction structure that ensures maximum value and minimal risk for our clients.
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