Feature Photo: The existing Montrose Place and Montrose Turtle Creek Apartments, Image: Google Streets.
Posted: 7-30-2021
by Adolfo Pesquera
Belton (Bell County) — A Missouri-based developer and property manager of apartment properties obtained low income housing tax credit financing to rehabilitate a 142-unit apartment complex.
The property was originally two adjacent apartment communities that were constructed in stages about 40 years ago. Montrose Place Apartments I was built in 1979; Montrose Place Apartments II went up in 1982, and the adjacent Montrose Turtle Creek was built in 1985.
The proposed rehab project will be known was Montrose Valley Apartments. The existing will not change; it consists of of 10 two-story residential buildings and a quarters for the lease office/laundry/maintenance operations.
However, modernization of the complex will be extensive. The estimated subtotals on the budget statement for site work and buildings costs was reported as $7,455,000. Including contingency account and other construction costs, the hard costs total more than $9.3 million.
Montrose Valley Apartments was awarded a 9% competitive tax credit of $1,452,135 from the Texas Department of Housing and Community Affairs Governing Board on July 22. The award allows the developer to close in the private sector financing and direct the architect to proceed with final design documents.
The developer, Hamilton Corporation of Springfield, Missouri, told the TDHCA that Sterling Bank will provide construction financing in the form of a construction loan in the amount of $11,700,000 at a rate of 5.75%.
Sterling will also provide the permanent financing in the form of a conventional loan. The perm loan will be in the amount of $2,400,000 at a rate of 5.75% and amortization of 35 years and a term of 17 years.
Hamilton Corp. acquired a property in October 2020. It had an existing USDA Rural Development loan, which it assumed. Because of its USDA status, the property was eligible for a “USDA set-aside”, a type of 9% tax credit application that is reserved for existing income-restricted properties in need of rehabilitation. The vast majority of 9% tax credit applications are for new construction.
The Montrose Valley property is located at 2200 Montrose Place in north Belton an a lot of almost 11 acres. The 10 residential buildings have a net rentable area of 104,874 square feet. Including the lease office, laundry room, maintenance and breezeways, the gross area is about 119,428 GSF. There is surface parking for 252 vehicles.
Hamilton Corp. is working with Wallace Architects of Columbia, Missouri on the new designs. The general contractor is Murdoch Contracting LLC.
Hamilton Corp. created a separate entity, Texas Housing Developers LLC, to act as the developer of record. Texas Housing Developers has a 60% stake in the project; the 40% share is held by a HUB identified as SDA 1305 LLC.
Their partnership is known as Belton Montrose Holdings LP, the property owner.
adolfo@virtualbx.com
