A 192-unit, garden style, rental community located at 72nd and Heards Lane, Galveston, Texas. This is a demolition rehabilitation of a Hurricane Ike damaged apartment community. This redevelopment is undertaken of RISE Residential Holdings and its principal owner, Saleem Jafar. The project financing is based upon allocation of Community Development Block Grant funds from the TDHCA awarded in December 2009 (same terms as Marina Landing) in the amount of $5.0MM combined with an allocation of hurricane recovery housing tax credits in the 2009 application round. In July 2009, TDHCA awarded the development a tax credit commitment of $1.45MM in annual housing tax credits to fully fund the acquisition and rehabilitation of the community. At least 14 of the units are specially equipped for residents with special needs.
RISE is the fee developer, property manager and general contractor for the development. They are also the long-term owner of the development. Construction financing for this development was provided by IBC in the amount of $7MM. IBC/FHLB offered a rate-locked forward funding commitment at 7.25% per annum fixed for 18 years, with a 30-year amortization permanent mortgage in an amount up to $7MM. The contractor broke ground on the project in November 2010. Completion: August 2011. 100% occupancy was achieved in December 2011. The construction contract was for $10.44MM. RISE is the property manager (closed and funded transaction).