The two complexes represent a considerable infusion into Michigan'saffordable housing stock, where more than a third of all renters are unableto afford fair market rent, said Related officials.
The first transaction is a $17.2 million rehabilitation of Belle MaisonEast, a 280-unit community situated along the Detroit River in an areaundergoing significant revitalization and highlighted by the development ofa 1 1/4 mile riverfront promenade.
The second involves a $19 million revitalization of the 297-unit OaklandPark Towers in Troy, 15 miles from downtown Detroit in a location close toretail and entertainment venues.
The developments are also the first to utilize a new Michigan State HousingDevelopment Authority program emphasizing the preservation of subsidized,privately owned affordable housing.
Patrick Martin, EVP of the company, said that many of the affordable housing complexes in Detroit and Troy have waiting lists as long as one year.
The company provided $4.2 million of equity to the Detroit complex for taxcredits generated by the transaction, and $4.9 million to the Troy complex.MSHDA provided $10.8 million in tax-exempt bond funds for Belle Maison Eastand $12.3 million for Oakland Park Towers.
Belle Maison East is located at 8330 East Jefferson Avenue, just three milesfrom downtown Detroit. The site is at the eastern edge of the $6 millionwaterfront redevelopment commissioned by General Motors and to include the 11/4-mile promenade, walkways, sculptures and waterfront benches.
The rehabilitated complex will consist of 280 units in an 18-story building,with both interiors and exteriors overhauled. The complex will also offersocial services including health screenings, caseworker support, and freehot lunches provided by Detroit Meals on Wheels.
Oakland Park Towers in Troy is located at 920 John R Road in the southernpart of a city. Most of the area's rental housing was built in the 1950s and1960s, and no other affordable housing complexes are planned in the marketarea, said Related officials.
The rehabilitated complex will hold 297 units in a 12-story building, withboth interiors and exterior overhauled.
Preservation of Affordable Housing LLC, based in Boston, is a for-profitaffiliate of Preservation of Affordable Housing, Inc., a national non-profitorganization focused on the preservation of existing subsidized properties.The non-profit has developed 15 properties containing 1,650 low-income unitssince 1999.
Recapitalization Advisors Inc. of Boston represented POAH as a consultantthroughout the development process.
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