LEDG Capital, a private company dedicated to the preservation and creation of affordable housing, announced it has closed financing for a 113-apartment mixed-income property Paradise Gardens Apartments in Dallas with plans to convert the community into 100 percent affordable housing and renovate the property.
Under the plan, the 90 market rate units at Paradise Gardens Apartments will be converted to affordable housing for 30 years under a Low-Income Housing Tax Credit Land Use Restrictive Agreement, while the Housing Assistance Payment contract protecting the remaining 23 units, which was due to expire in May 2025, will be renewed for 20 years. Under the new rent and income restrictions, apartments will be affordable to households earning between 30 and 80 percent Area Median Income (AMI).
In addition, LEDG will oversee a $5.2 million renovation to modernize the property over the
course of 10 months. Built in the 1970s, the renovation of the three-story, concrete structure will focus on in-unit improvements and building envelope enhancements that directly benefit residents.
Interior scope upgrades include all new cabinetry, quartz countertops and appliances, new
kitchen and bathroom plumbing fixtures, and new flooring, paint, door hardware, LED lighting fixtures, and new HVAC systems. The work will make six apartments fully accessible – the first accessible units in the property’s history. The exterior scope of work will include the installation of secure entry doors and security cameras and the renovation of community spaces, including a comprehensive elevator modernization, enhanced lighting, accessible paths of travel and parking lot repairs.
“We’re pleased to have the opportunity to protect and expand the affordable housing supply at an apartment community in Dallas’ rapidly gentrifying Lower Greenville neighborhood,” said Dmitry Gourkine, founding partner of LEDG Capital. “A bond allocation from the Dallas Housing Finance Corporation and an equity bridge loan from River City Affordable Housing were integral to the viability of this transaction, allowing LEDG to address the property’s deferred maintenance needs and improve the quality of life for residents for the long term.”
The city-run Dallas Housing Finance Corporation (DHFC), which provides tax-exempt mortgage revenue bonds and other support for the acquisition, construction or substantial rehabilitation of multi-family housing, issued tax-exempt bonds to support the project conversion and renovation.
“The DHFC strives to provide housing to the residents of Dallas throughout all areas of the city. It is vital that we preserve high-quality, affordable rental units in neighborhoods that are undergoing rapid redevelopment. Preserving housing that is close to job centers and attainable for all income levels is at the top of our priority list as more people continue to move into Dallas and seek to find an affordable place to live and work,” said DHFC General Manager Aaron Eaquinto.
River City Affordable Housing, a non-profit corporation in St. Louis, facilitated equity bridge
financing to maximize financial resources and expand the scope of improvements and project affordability in keeping with the organization’s mission to partner with developers to provide affordable housing and social services to low-income individuals and families in need. Walker & Dunlop, Inc., one of the largest commercial real estate finance and advisory services firms in the United States, served as the equity partner in the transaction.
“At Walker & Dunlop, we are committed to supporting transformative projects that preserve and expand affordable housing in communities across the country,” said Jennifer Erixon, senior managing director of Affordable Equity at Walker & Dunlop. “This partnership reflects our continued focus on mission-driven investments that ensure long-term affordability, enhance quality of life for residents, and strengthen neighborhoods like Lower Greenville. We’re proud to be part of a team that’s delivering lasting impact for families in Dallas.”
CBRE Group, Inc, the world’s largest commercial real estate services and investment firm,
served as lender. “CBRE is pleased to partner with the LEDG team and Fannie Mae to provide the financing for Paradise Gardens and we are proud of our continued relationship with LEDG and its commitment to providing and preserving quality affordable housing for its residents,” said Jim Flinn, vice chairman for Affordable Housing at CBRE.
Langerman Construction, a full-service general contracting company specializing in multifamily property renovations, is serving as general contractor for the work, using plans from Benton Design Group, an architectural firm based in Missouri.
