Construction Loan Will Renovate Affordable Housing in Courtland
Borrower : Stevens Woods II Apartments Limited Partnership
Where : Courtland, VA (Partnership based in Rockville, Md.)
Loan Amount : Up to $1.75 million
Project Type : Construction Loan, Low-Income Housing tax credit funding
Opportunity
Providing affordable, up-to-date housing is essential in rural communities, such as Courtland, Va. located near the state’s southern border. Stevens Woods II is a well-managed and nearly fully occupied complex, with 10 percent of its rental units reserved for military veterans.
With the need to update the aging 52-unit community, current owner Bob Margolis, decided to sell the community to a limited partnership established by two long-time business partners, Ari Severe and Adam Stockmaster.
The team turned to Virginia Community Capital to help finance the project. Stevens Woods II was built under the USDA’s Section 515 program, which backs loans to affordable housing rentals for low-income, elderly, and individuals with special needs in rural areas. Stevens Woods II has been successfully managed by Margolis’ Maryland-based real estate entity, T.M. Associates. Margolis has previously sold other properties in similar arrangements.
Margolis’ firm, T.M. Associates, established in 1999, has extensive experience developing communities with low-income housing tax credits (LIHTCs). Stockmaster and Severe have each been part of Margolis’ leadership team for more than 15 years.. T.M. Associates is recognized as an East Coast leader in providing rural housing developments under the USDA 515 program. Its team is skilled in managing LIHTC and USDA-financed deals. The company owns and manages more than 7,000 apartment units in over 200 communities across six states.
Solution
Construction Lending
Low-income housing can improve the quality of life and offer stability to individuals and families in a community by offering below-market and sometimes reduced rents – to help them focus on paying for other necessities like food, healthcare, and family support. As a mission-focused Community Development Financial Institution, we support developments like Stevens Woods II that can positively impact the surrounding communities. . VCC offers a variety of both mission-focused and traditional loans for real estate developers and investors: acquisition/refinance/rehab loans, construction loans, mini-perm loans, and low-income housing and historic tax credit financing.
Beyond lending, we are a partner for all projects in which we invest, and our borrowers can tap into our vast industry expertise to learn more about best practices and observed challenges in real estate projects. We the deploy talent and resources to answer complex questions our partners may have regarding capital sources, regulations, development methods, and more. By bringing in experts and stakeholders, we ensure every project has a plan for success.
Impact
Stevens Woods II serves as a high-priority and high-impact project in a rural community. The redevelopment will contribute to local economic development while continuing to fill a housing need in an underserved area.Like many USDA 515 properties undergoing upgrades, the redevelopment will offer a needed boost to enable its continued availability.