Post on 22-Oct-2020
URBAN RESIDENTIAL FINANCE AUTHORITY $22,500,000 Tax Exempt Loan Bond Resolution
The Reserve at Bolton Road
PURPOSE: To approve the financing for the construction of 209 units of multifamily housing.
LOCATION: 1070 Bolton Road, Atlanta, Georgia 30331 Council District: 9 NPU: H APS DISTRICT: 5
OWNERSHIP ENTITY: The Reserve at Bolton Road, LP DEVELOPER: KCG Development, LLC TYPE: Multifamily SET ASIDE UNITS: 43 units @ or below 40% Area Median Income (AMI); 133 units @ or
below 69% AMI; 33 units @ or below 80% AMI DESCRIPTION: The Reserve at Bolton Road will be located on the west side of Bolton
Road roughly one-quarter mile southwest of Donald Lee Hollowell Parkway and access to Interstate 285. The property amenities will include clubhouse/leasing office, swimming pool, laundry facility, exercise room, picnic and playground areas.
UNIT MIX: Apartment Unit # Units Type Size (SF) Rental
15 40% 1 bdrm 786 $511 18 40% 2 bdrms 1,084 $591 10 40% 3 bdrms 1,402 $666 43 60% 1 bdrm 786 $810 57 60% 2 bdrms 1,084 $949 33 60% 3 bdrms 1,402 $1,081 11 80% 1 bdrm 786 $990 14 80% 2 bdrms 1,084 $1,112 8 80% 3 bdrms 1,402 $1,260
209 DEVELOPMENT BUDGET: Sources Uses Tax Exempt Bonds $22,500,000 Acquisition $1,950,000 Tax Credit Equity Bridge Loan $9,500,000 Hard Costs $26,446,953 Federal Tax Credit Equity $4,289,242 Contingency $1,472,348 State Tax Credit Equity $2,681,735 Soft Costs $1,148,698 Deferred Developer Fee $1,459,337 Financing $2,548,025 Total Construction Sources $40,430,314 Interim Expenses $2,112,842 Reserves $1,251,448 Permanent Debt $17,550,000 Developer Fee $3,500,000 Federal Tax Credit Equity $13,562,134 Total Uses $40,430,314 State Tax Credit Equity $8,418,518 Deferred Developer Fee $899,662 Total Permanent Sources $40,430,314
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*We anticipate 22.5MM of tax-exempt bonds will be issued during construction. Once the property is leased up 90% occupancy the tax-exempt bonds and bridge loan will be paid off by a combination of a $17.5MM Freddie Mac perm and difference between $18MM in additional federal/state tax credit equity.
TAX IMPLICATIONS/FISCAL IMPACT:
*Based on IMPLAN Analysis **Based on estimates provided by the developer.
CONSTRUCTION PERIOD: 17 Months FINANCING STRUCTURE: 1ST lien tax exempt loan during construction; converting to Freddie
TEL placement through Prudential Real Estate FINANCING PARTIES: URFA (tax exempt bonds), DCA (tax credits), Regions (federal
equity investor and construction lender), Cabretta Capital (state equity investor), and Prudential Real Estate (permanent lender).
Direct Capital Investment $40,430,314 Total Economic Impact * $61,110,703 Permanent Jobs Created ** 5 Current Taxes $6,590 Projected Taxes after construction $206,705
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PROPERTY LOCATION MAP
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PROJECT SITE PLAN
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RENDERING
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EXISTING SITE PHOTOS