Durham, NC – Sherrod Banks, CEO of The Banks Law Firm, announced that his firm closed a $42 Million Dollar transaction for the Charlotte Housing Authority during the holidays. According to Banks, “The funds will be used to modernize two exiting apartment communities for the elderly, Strawn Tower and Parktowne Terrace, located in Charlotte, N.C.”
The proposed modernization of both properties will result in 170 apartments for Strawn Tower and 163 apartments for Parktowne Terrace. The first floors of each apartment complex will include outdoor sitting areas, offices, multi-purpose rooms, a commercial kitchen and a dining hall. The second floor of Strawn Tower will be converted into amenity areas, supportive service areas and offices. The residential units of both apartment communities will be completely renovated to include new energy efficient HVAC systems, kitchens, bathrooms, flooring, painting, and Energy Star appliances and fixtures. The renovated buildings will be LEED-certified.
“The mission of the Charlotte Housing Authority is to house our very low income seniors in a safe, quality, and service enriched environment. With this funding, the renovation of two of our older senior properties can begin in 2012,” commented Joel Ford, Chairman of the Board of Commissioners for the Charlotte Housing Authority.
CHA will commence construction in January of 2012. “What is great about this project is the economic impact it will have by providing 700 construction related jobs. Of these jobs, there will be opportunities for Section 3 and CHA residents. Included are 3 apprenticeship positions where someone can gain on-the-job skills. Business opportunities for Minority Women Business Enterprises and Small Business Enterprises are also available,” commented Chairman Ford.
According to Chris Squier, Chief Development Officer of CHA, “This project was made possible when CHA was approved by HUD to use a portion of its annual Capital Fund allocation as debt service for affordable housing bonds. Thereafter, CHA issued $19,900,000.00 in tax exempt bonds and loaned the bond proceeds to a newly formed Strawn Parktowne, LLC, which will own, modernize and operate the two properties. Strawn Parktowne, LLC has equity commitments of $13,161,401 from the syndication of low income housing tax credits. CHA has leased the land and sold the buildings to Strawn Parktowne, LLC for $1,000,000 in cash, with a $5,190,000 promissory note for the balance of the sales price. CHA and the City of Charlotte are using other resources to provide favorable loans to Strawn Parktowne, LLC totaling $2,444,395. An affiliate of CHA is the Managing Member of Strawn Parktowne, LLC, and CHA is the property manager.”
“Our law firm’s team was led by Catherine Liu, who did a marvelous job for our client as Developer’s Counsel, Issuer’s Counsel and Mixed Finance Counsel” said Banks. Other law firms making substantial contributions included Ballard Spahr (Special HUD Counsel for CFFP Funding), Hunton & Williams (Bond Counsel), and Sidley Austin (Equity Counsel). Tanya Locklair of The Banks Law Firm supported the entire development team as Real Estate Counsel.