Tennessee-based affordable housing developer scores $65M loan for Broward apartments


By Amanda Rabines

An entity linked to the Memphis, Tennessee-based affordable housing developer Housing Preservation Inc. just scored a $65.2 million loan to refinance a Broward apartment project, property records show.

Gateway Terrace II, LP got the loan from SunTrust Banks. Records show the entity owns a waterfront Fort Lauderdale apartment complex at 1943 Northeast Sixth Court. The low-rise apartment buildings, called Gateway Terrace, sit on nearly 7.5 acres.

Records show Gateway Terrace II paid $27 million for the 257-unit complex in 2015. A 40,723-square-foot adjacent parking lot across the street at 631 Northeast 19th Avenue was also part of the purchase.

The Gateway Terrace apartments were constructed between 1958 and 1964, and span 168,870 square feet, property records show. Gateway Terrace II obtained a $24.3 million mortgage from Pillar Multifamily LLC when it bought the property.

Other nearby affordable housing projects in Fort Lauderdale include the Housing Trust Group’s Village Place Apartments, a $25 million affordable housing project for seniors aged 55 and older who earn between 25 percent and 60 percent of the area’s median income.

Just last week, Atlantic | Pacific Communities, an arm of Atlantic | Pacific Companies completed Northwest Gardens V, the fifth phase of an affordable housing development at 700 Northwest 12th Avenue and 100 Southeast 18th Avenue in Fort Lauderdale. The project adds 100 new units and 100 redeveloped units to the city.
A research analysis by the brokerage firm Marcus & Millichap forecasts that annual rents will accelerate in Broward by 4.7 percent, from 4.6 percent last year. Multifamily investment sales have slowed down since 2015, when deals totaled a record $2.8 billion in South Florida.

Housing Preservation Inc. has properties in Winter Haven, Tampa and Atlanta, among other cities in the United States. The company is affiliated with Westminster Communities of Florida, a religious senior living nonprofit, according to its website. Gateway Terrace is its only South Florida community.

Source: TheRealDeal.com