MEMPHIS, Tenn., Jan. 20, 2011 (GLOBE NEWSWIRE) — ALCO Management Inc. today announced that financing has been secured and work has started on the first of four multi-family apartment communities slated for renovation throughout 2011.
The recapitalization initiative is expected to transform 466 apartments at communities in Nashville, Memphis, Parsons and Camden, Tennessee through investments of more than $8 million.
"Our team demonstrated resilience and resolve in securing the commitments needed to facilitate these significant new investments," said Robert D. Hyde, senior vice president and chief operating officer of Memphis-based ALCO Management. "Safe, clean and affordable housing is fundamental to the people and communities we serve. We know our residents will be pleased with the results."
ALCO Management ranks among America's top 100 owners and operators of affordable multi-family housing with a balanced portfolio of approximately 7,000 conventional and affordable apartment communities in eight Southeastern states.
During the next nine to 12 months, improvements to apartment buildings and to individual units, both inside and out, will extend the useful life of the housing stock, improve the quality of life for residents and increase the number of accessible rooms in each community.
Communities scheduled for renovation are:
- Dellway Villa Apartments, 345 Dellway Villa Drive, Nashville. The 244-unit community was built in 1979. More than $4 million of renovation is expected be done this year;
- Saints Court Apartments, 994 N. Watkins Street, Memphis. The 128-unit community was built in 1947 and rehabbed in 1980. More than $2 million of renovation is expected to be done by fall;
- Tranquility Apartments, 591 N. Forrest Avenue, Camden. The 44-unit community was built in 1971. The $900,000 renovation is expected to be complete by the spring;
- Gunn Garden Apartments, 31 Gunn Garden Place, Parsons. The 50-unit community was built in 1979. The $1 million renovation is expected to be complete by the spring.
Tennessee-based GSB Contractors, Inc. serves as general contractor on these jobs which will see community buildings outfitted with new energy efficient windows, doors, siding and new roofs. Individual apartments will be updated with new energy efficient HVAC systems, new kitchens, including cabinetry, countertops and energy-saving appliances, new flooring, and enhanced lighting.
To finance the Dellway Villa renovation, ALCO Management assembled a financial package which used bonds issued by The Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, Tennessee; a federally insured mortgage through Wells Fargo and the Nashville Field Office of the U.S. Department of Housing and Urban Development (HUD); Low Income Housing Tax Credits and Tax Credit Assistance Program funds through the Tennessee Housing Development Agency (THDA) and equity provided by Regions Bank.
"The ALCO team invested a lot of sweat equity and intellectual capital over a sustained period to find a way to transform Dellway Villa," said THDA Executive Director Ted Fellman. "Their success demonstrates not only how much they know about their business but how much they care about the people, cities and towns where they do business."
To finance the Saints Court renovation, ALCO Management crafted a financial package which used a mix of bonds and a PILOT tax abatement issued by The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee; a federally insured mortgage through Wells Fargo and the Nashville HUD office; Low Income Housing Tax Credits and Tax Credit Assistance Program funds through THDA; HOME funds through the City's Division of Housing and Community Development and a first-time equity investment in affordable housing by Independent Bank.
"When we preserve housing for families of limited means we help sustain viable neighborhoods which are important to our city's health," explained Robert Lipscomb, who serves as Housing and Community Development director for the city of Memphis and executive director of the Memphis Housing Authority.
"That's why the city of Memphis has partnered with the ALCO companies to preserve and renovate hundreds of affordable apartments through the years. And that's why we're pleased to join with ALCO again on work for Saints Court," said Lipscomb. "Our support helps ensure 128 families will have affordable homes for years to come."
To finance the renovation of Tranquility Apartments, ALCO Management secured a new first mortgage through Regions Bank and used Low Income Housing Tax Credit replacement funds through THDA. The THDA funds were made available through the American Reinvestment and Recovery Act, also known as federal stimulus funds. Camden is located in West Tennessee, north of Interstate-40 near Kentucky Lake and the Tennessee River between Nashville and Memphis.
To finance the renovation of Gunn Garden Apartments, ALCO Management left existing financing arrangements in place and used Low Income Housing Tax Credit replacement funds made available through THDA by the American Reinvestment and Recovery Act. Gunn Garden Apartments provides affordable housing for the elderly in Parsons, which is located in West Tennessee, south of Interstate-40 near the Tennessee River between Nashville and Memphis.
"I'm proud of the members of our ALCO team for their determination and ingenuity in the face of economic uncertainty and changing market conditions," said ALCO Chairman and CEO Frank Z. Jemison. "Their sound financial plan now enables us to execute an ambitious recapitalization plan and share the benefits with all our stakeholders."
ALCO Management is a privately held real estate firm that has specialized for more than 30 years in the development, financing, ownership and management of conventional and government-assisted apartment communities. The company, along with sister company ALCO Properties, owns and/or manages multi-family communities of almost 7,000 residential units in eight Southeastern states.
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Media Contacts: ALCO Management, Inc. Michael Johnson (901) 544 1705 Bob Hetherington & Associates Bob Hetherington (901) 280 4380