2021 is on track to be another big year at ALCO. In addition to adding new properties, the Acquisitions and Development Team is working on plans to upgrade a number of our current properties. On June 10, we closed on financing that will allow us to fund a $4 million renovation at Magnolia Terrace in Jellico, TN, and transition it into the Low-Income Housing Tax Credit program.
Preparation for this renovation has been long, and we have encountered a few bumps along the way since we purchased the property in 2018. We acquired the property with a long-term plan to preserve an important affordable community in Jellico. Built in 1978, Magnolia Terrace has a 40-year history of offering safe, quality apartments to low-income elderly residents, and it is time for the first significant renovation since construction. Construction will begin shortly and will last about one year. We will improve upon nearly every aspect of Magnolia Terrace. All 123 apartments will be upgraded to include new kitchens, new bathrooms, new HVAC systems, new water heaters and new energy-efficient lighting.
The buildings will be improved with new roofs, new windows and redesigned common spaces and amenities. The team in Jellico is excited about the new office that will be built out of a former basement! We are also investing in improving the residents’ experience at the property. We are partnering with Wesley Living to create the new role of on-staff service coordinator, who will focus on providing social services on the property and help residents access additional services in the community. Broadband Internet will be provided to all residents, and new security cameras and an emergency-call system will be installed to increase residents’ security and safety. The property will have a new library, computer lab, and a nice gazebo.
Projects like these are the result of the entire ALCO team working together. This would not have been possible without the hard work and cooperation of Accounting, Acquisition & Development, Asset Management, Compliance, HR, IT, Learning & Development, and Property Management. We want to give a special thanks to Marcia West, Nick Creekmore, Connie Creekmore, David Fritts, and Raymond Surber.
For everyone that works on another property, it is important to remember that this big project is also because of you. Every time we apply for tax credits or financing, we are judged on the work that we do all over the country. Every good REAC and every clean tax credit review is a point in our favor. Every property that meets its operational goals is a reminder to our financial partners that ALCO is a company they want to work with again and again. Thanks to everyone for giving ALCO such a strong reputation.
Our outside partners on this project are all repeat partners. Our regulators are the Tennessee Housing Development Agency and the U.S. Department of Housing and Urban Development. The project is financed in partnership with First Horizon Bank’s Community Investment Group and Dwight Capital. CMCC, LLC, is the general contractor for the renovation, and MMH Hall Architects/Planners, Inc. is the architect.