Two apartment complexes in Richmond’s Northside and East End will remain as Section 8 affordable housing properties after a recent commercial loan refinancing.
The 250-unit Ashley Oaks Apartments, along Government Road near Montrose Heights, and the 99-unit Newman Village Apartments, along Old Brook Road off Chamberlayne Avenue, were two of three affordable housing properties refinanced in a recent $23.97 million transaction by their New York-based owner, Related Companies.
M&T Realty Capital Corp. was the lender on the deal.
The third property, a 118-unit Section 8 complex, is located in Lowell, Massachusetts.
M&T announced in late November that it had closed on the Fannie Mae Multifamily Affordable Housing loans to refinance the three properties.
John Taylor, a managing director with M&T, said the refinancing was necessary for an existing loan that was set to mature. Taylor, based in New Jersey, led the transaction with fellow managing director Matt Hodson of M&T’s Falls Church office and staff with M&T Bank’s New York office.
“It was a maturing loan, so it was time to refinance,” Taylor said. “The property is expected to be staying with the same affordability that it has.”
Taylor said he could not comment further on the transaction. Attempts to reach Related for comment were unsuccessful.
According to city property records, Related purchased the 20-acre Ashley Oaks Apartments in December 2009 for $8 million in a multi-parcel sale. The property – between Government, Stony Run and Jennie Scher roads – was most recently assessed at $5.3 million.
Newman Village, at 4053 Old Brook Road, was purchased by Related in June 2010 for $3.36 million in a multiparcel sale. The 5.6-acre property near the Northside Family YMCA was most recently assessed at $1.88 million.
Both properties are described as consisting of Section 8 assisted living units. They were both secured with 10-year fixed-rate loans.
In the release, Matthew Finkle, president of Related Companies division Related Affordable, said the refinancing will help it make “a number of improvements to the properties and apartments.” The release did not elaborate on specific improvements planned.
The release states the 44-year-old company focuses on financing and developing government assisted multifamily housing for long-term investment. It has $50 billion of real estate assets owned or under development.