DEAL HIGHLIGHT
Pickens Gardens, Pickens, SC
See Why Developers Are Choosing to Partner with CSG for Their Multifamily Financing Solutions
This year, Churchill Stateside Group (CSG) announced the closing of a $5.2 million equity bridge loan in support of the 4% Low-Income Housing Tax Credit (LIHTC) transaction for Pickens Gardens, a 76-unit affordable housing community in Pickens, South Carolina.
While every successful closing tells part of the story, the journey behind the transaction often provides the greatest insight into what makes a project successful.
To learn more about the vision for Pickens Gardens and the financing strategy that helped bring the rehabilitation to fruition, we spoke with the development team at DGA Residential.
For additional details on the transaction, read the Pickens Gardens closing announcement here.
The Vision
What was the vision for this project, and what need does it address within the community?
"Pickens Gardens is a 76-unit, fully subsidized garden-style development that was constructed in 1980. When we acquired the development, it had never had a substantial renovation. We are very pleased to be able to spend approximately $70,000 per unit to modernize the interiors and exteriors of the development and stabilize affordable housing in the Pickens area for the future." - DGA Residential
Building the Right Financing Structure
What led you to choose this financing structure for the project over other options?
"Because Pickens Gardens is a smaller development, we knew that we would need to maximize every resource at our disposal. This resulted in a Mark-Up-to-Market (MUTM) rent increase, HUD 221(d)(4) financing, federal equity, state equity, and an equity bridge loan. It's well worth it to be able to see this project come to fruition." - DGA Residential
Where CSG Added Value
Where did CSG add the most value in the process?
"CSG's experience was invaluable during this process. Equity bridge loans can be challenging, but CSG's understanding of the pressures of all of our financing sources was certainly a value add." - DGA Residential
Overcoming Challenges
What was a key challenge in getting this deal done, and how was it solved?
"A key challenge for this project was its rural location. While the project is situated in a lovely setting, the lack of local hotels presented a challenge to our usual relocation plan. Our management team and contractor worked together to develop a plan that allowed our residents to stay in place during the rehabilitation. They have done an excellent job keeping our residents as comfortable as possible while delivering an excellent product."
"This deal also endured two government shutdowns, and we are grateful to our financing team for staying engaged and helping us stay as close to our closing schedule as possible." - DGA Residential
Looking Ahead
What are you most proud of in how this project came together?
"We are most proud of delivering an improved product to our residents and preserving affordable housing for the future. More than half of our development projects are new construction, but we believe that improving and preserving existing affordable housing stock is extremely important." - DGA Residential
Projects like Pickens Gardens demonstrate how creative financing, experienced development teams, and collaborative lending partners can work together to preserve quality affordable housing for future generations.
Churchill Stateside Group remains committed to helping developers navigate complex financing structures through equity bridge lending, HUD/FHA financing, USDA Rural Development lending, construction financing, permanent loans, and other multifamily capital solutions.
To learn more about how CSG can support your next affordable or multifamily housing transaction, contact our production team at production@CSGfirst.com or visit CSGfirst.com.