Garden Court Apartments
Garden Court Apartments was built in the early 1970’s and financed through the HUD Section 236 Mortgage Program. The property has a mix of 264 one, two and three bedroom multifamily units. 130 units at Garden Court are covered by a project-based HUD Section 8 rental subsidy contract. The acquisition and renovation of Garden Court Apartments is a joint venture between Evergreen Partners and Security Properties (Co-General Partner). The property was recapitalized using a combination of new debt financing provided by Deutsche Bank Berkshire Mortgage, Tax Credit Exchange Funding provided by Pennsylvania Housing Finance Agency (PHFA) and HOME Funds provided by the City of Lancaster. Evergreen implemented substantial interior and exterior renovations at the property following the acquisition in 2009. As part of the plan to stabilize and preserve Garden Court, the existing Section 8 subsidy at the property was extended to a 20-year term after the renovations were complete.
Garden Court Apartments
100 South Marshall Street
Lancaster, Pennsylvania
(717) 299-2291
Preservation Transaction Description
First Mortgage Financing: New debt financing was provided by Deutsche Bank Berkshire Mortgage through the HUD 221(d)(4) program.
HUD Section 236(e)(2): Interest Reduction Payments Decoupling: Under the HUD 236(e)(2) program, the remaining stream of interest reduction payments were “decoupled” from the original 236 mortgage and used to support additional new debt provided by Deutsche Bank Berkshire Mortgage.
Tax Credit Exchange Program: Over $11 million in Tax Credit Exchange Funding was allocated to the project by Pennsylvania Housing Finance Agency.
HOME Funds The City of Lancaster awarded $150,000 in HOME Funding to the project.
Property Rehabilitation Scope
Over $10 million in total rehabilitation is planned for Garden Court including:
- New Kitchen cabinets, counter tops and appliances
- New Bathroom vanity and lavator
- New flooring throughout the units and common space
- New High Efficiency HVAC System
- New Windows, Doors, Siding and Roofing
- New High Efficiency Lighting throughout the property
- New Community Building
- New Security Camera System
Development Partners
Co-General Partner
Security Properties
Allocating Agency
Pennsylvania Housing Finance Agency
Local HUD Office
HUD Philadelphia
Municipality
City of Lancaster, Pennsylvania
First Mortgage Lender
Deutsche Bank
Architect
The Architectural Team, Inc.
General Contractor
Whiting Turner
Due Diligence Contractors
Appraisal: Robert D. Wright, MAI
Capital Needs: The LJM Group, Inc.
Environmental: The LJM Group, Inc.
Surveyor: Lugate Engineering
