Northwest Real Estate Capital Corp. is pleased to announce the commencement of rehabilitation of the Crestview Court Apartments, located in Beaverton, Oregon. This will be our 18th rehabilitation project in the state of Oregon, and our 31st rehab project in the Pacific Northwest. Our acquisition and rehabilitation of this 48-unit family property will preserve another project with Section 8 project based HUD subsidy. The financing structure includes competitive 9% LIHTC, a tax credit equity bridge loan that will provide necessary funds during construction and perm financing.
Beginning with an interim acquisition closing in June 2010, we closed on the financing for this project in March 2012. The project is funded through a combination of grant funds (GHAP and Weatherization), Low Income Housing Tax Credits (LIHTC) and Oregon Affordable Housing Tax Credits (OAHTC) from Oregon Housing and Community Services (OHCS). We have partnered with PNC Real Estate as investor/syndicator, PNC Bank as bridge lender, and US Bank as the perm loan lender and purchaser of the Oregon Affordable Housing Tax Credits (OAHTC) allocated by OHCS. Soft financing in the form of deferred developer fee will be provided by NWRECC to fill the financing gap. We now have loan and equity funding in place to commence the much needed rehabilitation at this property.
Having achieved closing for the financing, the construction phase of this project began March 15, 2012 under the guidance of our rehab team: CSHQA, A Professional Association Architectural and Engineering, P.C. (Architect), CSDI Construction, Inc. (General Contractor), and NWRECC (Development Group and Operations). We expect approximately 10 months of rehabilitation with substantial completion scheduled for December 2012.
Rehabilitation of the property’s three residential buildings include replacement of exterior structural conditions such as roof, siding, window and sliding doors; repair to the parking lot, sidewalks and fencing. Interior structural conditions scheduled for improvement include addition of through the wall air conditioners, replacement of kitchen and bathroom cabinets and countertops, floor covering replacement, along with fixture and appliance replacement as needed. Accessibility standards will be improved in the property’s common areas and accessible units.