Ghebre Selassie Mehreteab, NHP's CEO and co-chairman, says his organization is working to buy and upgrade 1,000 affordable housing units within 18 months. Beyond that, he says the eventual goal is to have a total of 3,000 units along the Gulf Coast, with an emphasis on Louisiana.
The New York City-based foundation is poised to close on the 184-unit Goodwood Place Apartments at 356 Apartment Ct. and 96-unit Towne Oaks Apartments at 1331 N. Sherwood Forest Dr. in Baton Rouge and 276-unit Cypress Apartments at 4249 Fifth Ave. in Lake Charles. The seller is Sheltering Palms of Washington DC.
In recent weeks, NHP bought the 313-unit Copper Ridge Apartments at 2080 N. Lobdell Ave. and 246-unit Magnolia Trace Apartments at 11581 N. Harrells Ferry, both in Baton Rouge, from the seller. The buyer also owns nearly 900 units in New Orleans.
"There was a lot said about people fleeing the state from New Orleans following Hurricanes Katrina and Rita," Mehreteab says. "But a large number of those actually stayed in state and went to places like Baton Rouge."
Mehreteab says the influx of more than 150,000 people into Baton Rouge and Lake Charles strained affordable housing availability in both cities. "That was the rationale behind going to these areas, to add more quality units to the affordable housing market," he tells GlobeSt.com.
Mehreteab says the Baton Rouge and Lake Charles assets are high quality in good locations. "When people think of affordable housing, they think of properties that aren't attractive or that require a lot of rehab work," he adds. "These properties are in very good neighborhoods and are in very good shape."
The portfolio's occupancy is 92%. Rents range from $400 to $650 per month for one- and two-bedroom apartments and townhouses. Units average 825 sf.
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