For Immediate Release.
For Further Information Contact:
Deborah Kast: 314-989-9600
Vice President of Business Development, Gannon Realty
dkast@gannonintl.com
Gannon Properties Closes First Low-Income Tax Credit Acquisition — Park Ridge Apartments
St. Louis, MO
On April 5, 2007, Gannon Properties acquired Park Ridge Apartments, its first property to be financed in part through low-income housing credits. Gannon was able to fund the project with $10 million dollars in tax credit equity, coupled with tax exempt bonds covering $12 million in debt, which funded the acquisition, as well as an additional $8 million for renovations.
Dave Weygandt, Senior Vice President of Gannon Development Company, who has worked for Gannon for 22 years, is pleased the company was able to succeed with a project that was quite involved and complex. “Because Gannon took advantage of the low-income tax opportunity, we were able to create a new project where residents are able to live for essentially the same amount of money, but at a much higher quality of life. It’s a place residents can be proud of.”
The Park Ridge complex, located across from Emerson Electric in the mixed-income neighborhood of Ferguson, MO, has been owned by Gannon affiliates since 1992. The complex is comprised of 336 one-, two-, and three-bedroom units in 21 buildings. Originally built in 1968, the buildings required extensive interior and exterior renovations.
Since closing the deal in April, three buildings have already undergone renovations ranging from replacement cabinets, appliances, carpeting, and new HVAC systems in the interiors, to new roofs, asphalt paving, steel and concrete walkway replacements, and landscaping on the exteriors.
Historically Park Ridge has always had a high rate of occupancy, and because most of the current residents already qualified for the tax credit, a major re-tenanting of the buildings was not required.
The General Contractor performing the renovations is Gannon Development Company. Gannon Management Company, which currently manages approximately 4,000 units in the St. Louis area, will oversee the project.
April 2007
