The Sands Apartments
The Sands Apartments was originally built in 1981 under HUD 202 Program. The property is comprised of 120-units, with a mix of one bedroom and two bedroom units. The Sands is dedicated to serving elderly and disabled individuals and 119 units at the property are covered by a project-based Section 8 rental subsidy contract. Evergreen Partners in partnership with Senior Housing Group (SHG) acquired the property in December 2011. Substantial renovations were then completed by the end of 2012. The renovations updated both the interior and exterior of the building, modernizing the units and replacing the aging building systems such as the roof, windows, heating/cooling and hot water systems. Evergreen and SHG used a combination of financing sources to acquire and renovate The Sands Apartments. Construction financing included the proceeds generated by the sale of tax exempt bonds placed by Red Capital and a HOME Loan provided by the City of Virginia Beach. Equity was raised through the sale of 4% Low Income Housing Tax Credits to PNC Bank. The Sands has also secured a new HUD 221(d)(4) permanent loan. This taxable financing will ultimately replace the tax-exempt debt that was also originated at closing. To complement the substantial physical improvements being made to The Sands, Evergreen has also entered into a new 20-year project-based Section 8 rental subsidy contract to the property to help support the long term affordability of the property.
The Sands Apartments
6405 Auburn Drive
Virginia Beach, VA 23464
Phone: (757) 420-0891
Preservation Transaction Description
First Mortgage Financing: Construction Period Financing was provided by proceeds generated from the sale of tax exempt bonds issued by the City of Virginia Beach and purchased by Red Capital Markets. Red Capital Mortgage will be providing a new HUD 221(d)(4) loan to the property that will serve as the permanent first mortgage financing. The HUD 221(d)(4) loan will replace and retire the tax exempt bonds post renovation.
Equity Financing: Virginia Housing Development Authority provided 4% Low Income Housing Tax Credits which were purchased by PNC Real Estate.
Other Key Financing: HOME Funds were provided to The Sands Apartments by the City of Virginia Beach.
Section 8 Contract Renewal: Yes
Property Rehabilitation Scope
Approximately $3.4 million in renovations were implemented, including:
- New kitchen cabinets, countertops and fixtures
- New Energy-Star rated appliances
- New bathroom vanity, fixtures and lavatory
- New flooring throughout the units and common space
- New central hot water system
- New Heating/Cooling units
- New windows, exterior brick repair and roofing
- New Community Room including common kitchen and pantry
Development Partners
Allocating Agency
Virginia Housing Development Authority
Local HUD Office
HUD Richmond
Municipality
City of Virginia Beach
Tax Exempt Bonds
City of Virginia Beach Development Authority
Tax Exempt Bond Purchaser
Red Capital Markets
HUD Lender
Red Mortgage Capital
HOME Loan
City of Virginia Beach Department of Planning and Community Development
Equity Investor
PNC Real Estate
Legal Counsel
DLA Piper
Architect
The Architectural Team, Inc.
General Contractor
Clancy & Theys, Inc.
