Release Date: August 24, 2021
National developer continues expansion into the state of Georgia
JONESBORO, GA – Vitus, a national developer and owner of affordable housing, has announced the acquisition and planned renovation of Riverwood Townhomes, adding an 11th property to its portfolio in Georgia. The 282-unit multifamily apartment community is located in the Jonesboro area, approximately 17 miles outside of Atlanta, and features 1, 2, 3 and 4-bedroom apartments, 100% of which are rent restricted to 60% area median income.
As part of the acquisition, Vitus will renew a Housing Assistance Payment contract to guarantee the community’s units remain affordable for the next 20 years. In doing so, Vitus is addressing the critical need for affordable housing in the greater Atlanta metro area while also extending the useful life of Riverwood Townhomes to offer stable housing to current and future residents.
“Through our financing partnership with Berkadia, we are thrilled to be able to make such a significant investment at Riverwood Townhouses,” said Samantha Cullen, development management director at Vitus. “These property improvements will provide high-quality, affordable housing to our residents and benefit the surrounding community as a whole.”
In order to fund the project, Vitus worked with Berkadia, which secured both $25.9 million of acquisition bridge financing and $25.3 million of permanent financing used to rehabilitate the property. The bridge loan has a 4.25% adjustable interest rate and was provided through Berkadia’s proprietary bridge lending platform. The permanent loan has a 3.21% fixed interest rate and was provided through Freddie Mac’s affordable housing program.
“Berkadia has been focused on expanding affordable housing product offerings and diversification,” said Tim Leonhard, senior managing director of Berkadia Affordable Housing. “The ability to offer proprietary bridge lending has been critical to helping our clients fulfill their investment objectives and has brought more affordable housing to the communities that need it most.”
The renovation budget for the Riverwood Townhomes is approximately $68,847 per unit. Interior repairs will include kitchen and bathroom remodels, new flooring, upgrades to LED lighting fixtures, as well as energy-efficient HVAC systems and water heaters in all units. Exterior renovation and repairs include new roofing, siding, windows, exterior doors, sidewalks and asphalt. To honor Vitus’ commitment to environmentally-friendly construction, upgrades include efficient lighting, plumbing and windows as well as ENERGY STAR qualified appliances.
Renovations are currently underway and scheduled to be completed in the next 14 months. With no new construction, the project is expected to create minimal disruption for the surrounding community.
At Vitus, our mission is to create positive impact – one community, one family and one life at a time. Since 1993 we have partnered with lenders, investors and public agencies to preserve and extend the life of existing affordable housing across the country in markets with the greatest need. Through holistic renovation, we focus on the well-being of residents and rejuvenating the surrounding community to both improve the overall quality of each property and incorporate features that promote physical activity, community gathering and energy efficiency. To date, our team has provided stable homes for more than 30,000 residents in 29 states. vitus.com