Development corporation acquires affordable housing portfolio
A minority and women-owned development company in Michigan has acquired several affordable housing units for rehabilitation.
Ginosko Development Company (GDC) has partnered with New York-based L+M Development Partners and secured a portfolio of nine properties in Michigan.
The acquisition includes 1,640 units among 115 buildings across the state.
Coventry Woods, a West Michigan seniors’ apartment complex located at 3550 Remembrance Road NW in Walker, is now part of Ginosko’s portfolio.
The other eight properties are in Detroit, Saginaw, Pontiac, Canton, Center Line and Monroe.
Amin Irving, Founder, Chairman and CEO of GDC, said the company’s creativity and savvy combined with its partners’ financial savvy contributed to the acquisition.
“I truly believe these agreements reflect the heart of economic and collaborative equality,” Irving said.
More than half of all units in the portfolio are for the elderly, while seven of the properties have Department of Housing and Urban Development Section 8 contracts and two buildings are earmarked for households with the area median income is equal to or less than 60%.
GDC and L+M said they would preserve the affordability of all properties while rehabilitation plans are implemented.
Specific plans include renovating kitchens and bathrooms, upgrading amenities and spaces, upgrading mechanics, and improving curb appeal, depending on the needs of each complex.
Coventry Woods and four other properties were acquired with bridge financing from the Community Preservation Corporation, Freddie Mac and Merchants Bank.
GDC said these five properties will eventually be syndicated using 4% low-income housing tax credits through a Michigan State Housing Development Authority tax-exempt bond.
The remaining four properties were acquired using equity through the Citi Emerging Managers Fund and conventional debt through the Community Preservation Corporation, Freddie Mac and Merchants Bank.