Greystone Affordable Development Closes $79.2 Million RAD Deal in Greensboro, NC
January 25, 2018
Greystone Affordable Development announced the closing of a $79.2 million transaction in Greensboro, North Carolina through the HUD Rental Assistance Demonstration program. Converting the financial structure of 645 units of affordable housing across nine affordable housing communities for the Greensboro Housing Authority, the RAD deal enables access to capital for physical improvements and overall increased operational efficiency.
The RAD transaction marks a critical step towards renovating the nine affordable housing properties that were built between 1959 and 1996. Restructured with new debt from sources such as Tax-Exempt Bonds, Low Income Housing Tax Credit equity from Boston Financial Investment Management, and Fannie Mae loans from PGIM Real Estate, the Greensboro Housing Authority now has the cash infusion for deferred maintenance, which is estimated at $44,000 per unit. HUD’s RAD program converts public housing properties to a Section 8 platform, enabling housing agencies to leverage public and private debt and equity.
“Having the ability to complete a widespread preservation effort such as this across nine separate properties has been an incredible feat, and we thank Greystone for partnering with us in the RAD process,” said Tina Akers Brown, Chief Executive Officer of Greensboro Housing Authority. “We are excited to embark on the renovation process and can’t wait for the final result.”
“Navigating the RAD process can be incredibly challenging, but the long-term benefits – for both the owning entity and for the residents themselves – are well worth the effort,” said Tanya Eastwood, President, Greystone Affordable Development. “Public housing authorities such as Greensboro have seen a great benefit from utilizing the RAD program to allow for certainty in funding capital improvements to their properties. It has been our pleasure to work alongside GHA, NCHFA, PGIM, Boston Financial, and all of the participants in the trenches of this deal for the greater benefit to thousands of residents.”
“Executing a RAD conversion can help extend the life of critical affordable housing, and the portfolio concept, which addresses multiple properties at once, is a model for preservation and for the success of public-private partnerships – all thankfully still accessible under the latest tax reform,” said Will Eckstein, Senior Vice President, Greystone Affordable Development.
Greystone’s experienced team has preserved over 10,000 affordable housing units as both financial advisor and developer, putting into place the resources needed from a variety of sources to preserve and refurbish housing that is critical to many low-income or senior residents in the U.S. In advising housing authorities throughout the RAD conversion process, Greystone brings its capital assistance, equity and debt access, relationships with State and Federal agencies, and decades of experience transforming residential properties through recapitalization.