A 256-unit, garden style, rental community located at 72nd and Heards Lane in Galveston, Texas. This is a demolition rehabilitation of a multifamily apartment community damaged by Hurricane Ike. This re-development was undertaken by Odyssey Residential Holdings and its principal owner, Saleem Jafar. The project financing was based upon allocation of Community Development Block Grant funds from the TDHCA awarded in March 2010 in the amount of $10MM (no payment, fully subordinated, 2% interest, accrued only, with a balloon in year 30) combined with a forward allocation of HTC. TDHCA awarded credits from the 2010 credit ceiling for the development of $1.65MM in annual credits to fully fund the acquisition and rehabilitation of the community. At least 18 of the units are specially equipped for residents with special needs.
RISE was the fee developer, general contractor, and the property manager for the development, Construction financing for this development was provided by IBC using the FHLB CIP program in the amount of $8.0MM. The IBC FHLB funds offered a rate-lock, forward funding commitment at 7.60% per annum fixed for 15 years, with a 30-year amortization permanent mortgage for this property in an amount up to $8MM. The contractor broke ground on the project in March 2011. Completion: March 2012. 100% occupancy was achieved in October 2012. The construction contract was for $13.2MM. Equity was provided by Liberty Bankers Life.