The 192-unit complex will deliver in April 2003 on 22 acres along US Highway 61 on the south end of town. PRS Cos. of Roswell, GA is the developer for Magnolia Commons of Vicksburg, an affordable housing project in the largest Mississippi River port city in the state.
New York City's Related Capital Co. provided $2.5 million in equity for tax credits while affiliate CharterMac kicked in $8.7 million gleaned through bond investments. The 25-year loan is amortized over 25 years. The financing duo doesn't release interest rates or LTV, but given today's lending environment the loan amount most likely represents at least 75% of the project cost.
Vicksburg, 45 miles from the state capital, is categorized as one of the more developing industrial cities in the South and a center for retail trade, according to the lenders. The boomtown atmosphere and limited multifamily supply have pushed citywide occupancy to 97%, the lender says. "Vicksburg boasts high multifamily occupancy rates with virtually no new construction in years and none planned," Jim Spound, CharterMac's executive vice president, said in a press release.
Magnolia Commons consists of six two- and three-story buildings. Unit size ranges from 700 sf to 1,100 sf in one- to three-bedroom designs. The rent scale is projected to have a floor of $460 per month. The affordable housing gated community, designed with amenities such as a clubhouse, will offer after-school programs and computer tutoring.
PRS Cos., a 30-year-old builder, has come out strong in the last decade in the affordable housing arena. It has about 2,500 units under construction in the South. The existing portfolio consists of 4,000 apartments, of which 3,200 are affordable housing.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
