INDIANAPOLIS, IN – Flaherty & Collins Properties has announced four projects that represent a total of $80 million in new and upgraded affordable housing. Two projects – Emerald Pointe and Misty Glen – are each receiving large upgrades on buildings that are 25-plus years in age, while two others, Parkside at Tarkington and Jazz Hill are adaptive reuse and historic preservation.
“These two rehab projects at Emerald Pointe and Misty Glen have been some time in the making,” said Derek Hammond, CFO and President of Affordable Development at Flaherty & Collins Properties. “It’s been a labor of love for our Affordable Development team here at F&C and we could not have done it without the help of so many wonderful partners. We’re excited to get started on improving these two communities for our residents.”
Emerald Pointe, located South Bend, Indiana, is a 168-unit affordable housing community that has not had any major upgrades since it was completed in 1998. As part of the $18.4 million project, Emerald Pointe will see much needed upgrades to individual apartments, with new countertops, LVT flooring, kitchen cabinets, bathroom fixtures and vanity. In addition, building exteriors will also see upgrades, including new roofs and siding, new second-floor stairs and new HVAC. The project was financed using 4% tax credits in conjunction with the Indiana Housing & Community Development Authority (IHCDA). CREA is the equity investor on the project, and 1st Source Bank provided construction and bridge financing, with permanent financing provided by Housing and Urban Development (HUD) through Merchants Bank of Indiana.
Misty Glen, an 80-unit affordable community located in Hebron, Indiana, was completed in 1996 and also has not seen major improvements since the property’s initial construction. As part of a $9.5 million rehab, Misty Glen will receive new roofs and siding, new 2nd floor stairs and units will receive new kitchen cabinets, countertops, LVT flooring, bathroom fixtures and vanity and HVAC – equaling out to $30,000 per door. The project is financed using 4% tax credits in conjunction with IHCDA. CREA serves as the equity investor, with construction and bridge financing provided by First Merchants, while permanent financing is with Cedar Rapid Bank and Trust.
In addition, Flaherty & Collins Properties is opening Parkside at Tarkington, a $16.2 million project located in downtown Indianapolis. The 60-unit affordable senior housing is the adaptive reuse of the former United Way headquarters in Indianapolis. A partnership with Midtown Indianapolis, Inc., Parkside features 8,000 square feet of first floor office space and 20 percent of the units are reserved for residents with intellectual and/or development disabilities. The building was placed into service on December 6, and currently has units available for rent. Parkside at Tarkington began construction in August 2021, financed with 9% credits from IHCDA and with CREA serving as the Low Income Housing Tax Credit (LIHTC) investor. Merchants Capital is the construction and permanent lender. The City of Indianapolis provided HOME funds, with Federal Home Loan Bank providing AHP funds.
This year F&C will also rehab Jazz Hill, a 197-unit affordable housing community in a $35 million historic preservation of 11 buildings along The Paseo, a historic boulevard in Kansas City, Missouri. The buildings will be completed over the next 16 months and each unit will receive over $100,000 in renovations, that include preserving the masonry, historic windows, porches and columns, while providing all new appliances, HVAC, roofs, flooring, bathrooms, cabinets, lighting, and elevators. A partnership with Twelfth Street Heritage Development Corporation, the project was financed with 4% Low Income Housing Tax Credits from MHDC, Federal and State Historic Tax Credits and tax-exempt bonds from the PIEA. Merchants Capital is the LIHTC investor, and Federal Historic Tax Credit investor, construction lender and provided Freddie Mac permanent financing. Monarch Capital is the State Historic Tax Credit investor. Kansas City provided $4.12 million in CCED funds.
“United Way heavily discounted the building to help make the Parkside project possible,” said Drew Rosenbarger, Vice President of Development and lead project developer for Flaherty & Collins Properties. “Time and again, we find great local and national partners who are willing to really put in the work to help make these projects a reality. There’s a huge need for quality affordable housing throughout the nation, and projects like Parkside and Jazz Hill are examples of an approach that’s all about rolling up your sleeves and finding a mix of what’s best for a city, its residents and project partners.”
Flaherty & Collins Construction is the general contractor on Parkside, Emerald Pointe and Misty Glen, while Centric is the general contractor for Jazz Hill. Flaherty & Collins Properties serves as the property manager on all four communities.
“These projects are really complex and have a lot of players that want to help make them work for the good of the community and residents,” added Hammond. “It’s exciting to make the puzzle pieces fit, especially when you have vastly different projects – from historic preservation to adaptive reuse and rehab upgrades. We’re fortunate that our team has a lot of experience, so we’re already looking forward to the next city we can partner with to make a difference.”