Statesboro’s Summit apartments, a senior apartment high rise community in downtown, sold recently. The sale was part of a $106 million deal which included a portfolio of 20 property, project-based Section 8 housing. The Summit was sold by Ambling, a Valdosta, Georgia company who was the owner, operator and manager of a affordable LIHTC, HUD, market-rate senior apartment communities.
Statesboro Summit Apartments is a 98-unit development Section 8 housing. The property is located at 241 N Main Street in downtown Statesboro. The property offers one, and two-bedroom units. All units are located within a six story high-rise buildings.
According to Multi-Housing News, the total portfolio of 20 properties were sold to three different buyers and totaled 1,763 units located across Georgia, North Carolina and South Carolina.
Ambling CEO Mike Godwin noted in prepared remarks the portfolio represented Ambling’s history of developing and preserving best-in-class affordable housing across the Sunbelt. He said the buyers—Preservation Partners Development, Infinity Real Estate Advisors LLC and Jonathan Rose Cos.—are all equally committed to preserving the portfolio’s long-term affordability.
Preservation Development Partners, headquartered in Torrance, California acquired 12 of the communities which includes the Summit in Statesboro in addition to: Athens Gardens and Clarke Gardens in Athens, Ga.; Glynn Isle Townhomes in Brunswick, Ga.; Calhoun Gardens in Calhoun, Ga.; Cartersville Gardens in Cartersville, Ga.; Bridge Creek and Merrimac Village in Fitzgerald, Ga.; Forsyth Gardens in Forsyth, Ga.; Catoosa Gardens in Fort Oglethorpe, Ga.; Riverside Gardens in Macon, Ga. and Burkestone Place in Waynesboro, Ga.
Clarke Gardens, Athens Gardens, Calhoun Gardens, Catoosa Gardens, Cartersville Gardens and Forsyth Gardens are all in the middle of substantial rehabilitation projects that will update interiors and community spaces.
IREA acquired two North Carolina properties: Fayetteville Gardens in Fayetteville, N.C., and Salem Gardens in Salem N.C., and five South Carolina communities: Anderson Village in Anderson, S.C.; Phoenix Place in Greenwood, S.C.; Manning Gardens in Manning, S.C.; Mauldin Gardens in Mauldin, S.C.; and Seneca Gardens in Seneca, S.C.
Jonathan Rose purchased Savannah Summit in Savannah, Ga.
Preservation Partners Development
Preservation hopes re-syndicate the asset once the regulatory agreement on the previous tax credits with DCA expires in 2022.
Re-syndicating an asset the process of financing the rehabilitation of a property through the state of Georgia’s housing department, Department of Community Affairs (DCA).
The regulatory agreement of a re-syndication allows you to do so after 15 years and they are hoping to re-syndicate Statesboro Summit with Tax Credits and Tax-Exempt bonds once that happens in 2022.
In 2019 they celebrated their 20th anniversary as Preservation Partners and in that time they have acquired 75 properties in 8 different states.
In 2019 alone they rehabilitated 10 properties and 1340 units all with substantial upgrades spanning $40k – $75k per door, dependent on the needs of the community and the current shape of the property.
Preservation works with partners to finance, develop, and invest in their properties and their portfolio, they are very hopeful to be able to re-syndicate the Summit Apartment with DCA in 2022.
In the interim they will be putting together a scope of work for the rehabilitation of Statesboro Summit over the next couple of years in order to best serve the community at Statesboro.
JLL Capital Markets
JLL Capital Markets marketed the portfolio on behalf of Ambling, which has corporate offices in Valdosta, Ga., and Greenville, S.C., as well as 11 regional offices. The JLL team was led by Doug Childers, senior managing director & co-head of JLL Affordable Housing, and Director Michael Fox along with Senior Managing Director Ryan Clutter.
Childers said in a prepared statement the sale of the portfolio represented an essential preservation of affordable housing. He noted the transaction was executed across a variety of acquisition strategies that required coordination between multiple capital sources, state agencies and HUD.