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Jonathan Rose buys another affordable property for $25M

Jonathan Rose Companies has acquired a second affordable housing development in as many weeks.

In a joint venture with Columbia Residential and in conjunction with the non-profit SUMMECH Community Development Corp.,  Rose acquired City Views at Rosa Burney Park (City Views), a 181-unit family Section 8 and LIHTC community in Mechanicsville near downtown Atlanta, GA, for $25 million.

The property of garden style apartments ranging from 2-5 bedrooms and a tower of one bedrooms was out of its initial Low Income Housing Tax Credit (LIHTC) compliance period and had only five years remaining on its existing Housing Assistance Program (HAP) contract. Its Section 236 use restrictions limiting rentals to households with incomes at or below 80 percent of the area median income and limiting rents to HUD-approved, cost-based rates, were expiring in 2020.

The acquisition preserves the affordable housing in Atlanta with a renewal of the HAP contract covering 154-units for 20 years and preservation of  the affordability of all units at a mix of 40, 60 and 80 percent AMI levels for the next 30 years, according to Brandon Kearse, Director of Acquisitions at Jonathan Rose Companies.

A $16.5 million renovation of the property is planned. Several thousand square feet of community space that had been previously closed off and used for storage will be reactivated, including a fitness center, craft room, package room, upgraded laundry facilities, community room with warming kitchen and free Wi-Fi, a computer learning center and updated management and resident services offices.

The building will be renovated with new roofs, windows and elevators; façade and brick repairs and repointing; and improved ADA accessibility.  Other major improvements will include the replacement of the waste plumbing and vent stacks, as well as the conversion of a two-pipe boiler-chiller system to individual in-unit air conditioning and ventilation systems.

The apartments will also be completely renovated, including new LVT flooring, new kitchens, new bathrooms, Energy Star appliances, low-flow plumbing fixtures and LED light fixtures, achieving green certification.  Residents will be temporarily relocated off-site on a rolling basis, in durations of less than 30 days each.  Total renovations are expected to last 19 months.

“Atlanta’s growth and economic success has accelerated the critical need for the preservation of existing affordable housing,” said Christina Davis, Senior Development Manager for Columbia Residential. “In addition to renovated physical structures we are excited to now staff the community with a full time resident services coordinator to serve families. This investment extends Columbia Residential’s longstanding investment in quality housing in Mechanicsville and the City of Atlanta.”

Earlier this month, Jonathan Rose Companies paid $93 million for Tower West Apartments, a 217-unit HUD-regulated, partial Section 8 Mitchell-Lama property at 65 West 96th Street on Manhattan’s Upper West Side.

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