Long-Neglected Section 8 Property to Get Upgrades

Steele will invest more than $38,000 per unit on substantial property improvements.

HOUSTON— Garden City Apartments , a 252-unit, 100% project-based Section 8 multifamily community, is minutes from downtown, Interstate 45, numerous retail amenities and excellent schools. The property was built in 1970 and consists of 29 residential buildings on slightly more than 12 acres of land. With an acquisition value of $31 million, the multifamily asset has been purchased by Steele Properties , which intends to preserve the property. Steele will invest more than $38,000 per unit on substantial property improvements such as updated kitchens featuring Energy Star-rated appliances, updated bathrooms, flooring, lighting, plumbing as well as central heating and air. Significant accessibility improvements will include the installation of ADA concrete ramps and accessible sidewalks throughout the property, and 15 units will be converted to ADA accessible, while two units will accommodate the visual and hearing impaired. Chad Asarch , a principal owner of Steele, tells GlobeSt.com: “The property is vital to the North Houston community although it has not received a significant renovation since its construction and is in dire need of repair.” Approximately $216,334 in security upgrades will be made and include new security cameras, LED exterior lighting and key fob access to laundry facilities and community building. The 6,000-square-foot community building will be completely renovated and will feature a library, fitness center, computer lab with Wi-Fi internet access, and large community gathering space with a kitchen. A new gazebo will be installed on the property along with picnic tables, barbecue grills, a new basketball court and two playgrounds. “The enhancements and security upgrades at Garden City will not only revitalize the property and surrounding community, but also will provide residents with a quality and safe place to call home,” noted Paul Moore , acquisition manager at Steele. Residents will have access to beneficial supportive services that will have an impact on their lives as well. These services include career training, tax preparation assistance, creative writing classes, an annual health fair and after-school tutoring for children. “Garden City is an essential housing community for the city of Houston and we are pleased to be able to preserve and improve it for residents,” says Asarch. “It was very important for us to close this transaction, particularly since the property has not been renovated in almost half a century. We look forward to beginning work on the rehab to strengthen this vibrant community and provide an environment in which residents can take pride.” Equity for the project was provided by PNC Bank , which bought federal low-income housing tax credits awarded by the Texas Department of Housing and Community Affairs . PNC also will service a Freddie Mac loan which was generated through the sale of tax exempt bonds. Garden City will be managed by Monroe Group Ltd ., a leading affordable housing property management company with a portfolio of 36 properties totaling more than 3,700 units nationwide.