BOSTON, MA - Boston Capital is investing in the construction of Knob Ridge Apartments, a 48-unit multifamily apartment community for families in Seymour, Tennessee. In addition to its equity investment in Knob Ridge Apartments, Boston Capital Finance (BCF) provided a 24-month construction loan which closed into the Boston Capital Intermediate Term Income Fund, a fixed-rate, construction financing fund.
"Knob Ridge Apartment's high-quality design and construction, generous amenities package and stellar location within the community will provide residents with an attractive alternative to the housing choices currently available within the marketplace," stated Kevin P. Costello, Executive Vice President and Director of Institutional Investing at Boston Capital. "Boston Capital continues to achieve strong investment results through our specialized finance and investment programs while providing our developer partners the best in equity and debt financing."
Located on 18.3 acres, Knob Ridge Apartments will feature four one-bedroom, 26 two-bedroom and 18 three-bedroom units located in 24 two-story, duplex-style buildings. Units will include washer and dryers, central air conditioning, ceiling fans, fully equipped kitchens including dishwashers and patios. Development amenities will include a playground and a community building which will host a community room, kitchen and rental office. Units will be available to families earning 60 percent or less of the Area Median Income (AMI).
The construction of this property will generate nearly $5 million in local income and create approximately 75 jobs in the Seymour area. Boston Capital's investment in Knob Ridge Apartments adds 48 units of affordable housing to its apartment portfolio. To date, Boston Capital has invested in nearly 3,300 units of affordable housing in more than 40 communities in Tennessee.
About Boston Capital Finance
Boston Capital Finance (BCF) originates, manages and services both funds that target construction and permanent lending opportunities on new construction or substantially rehabilitated LIHTC (Section 42) properties in which Boston Capital and/or other national syndication firms provide tax credit syndication equity. In 2011, Boston Capital introduced two new debt initiatives including the Boston Capital Intermediate Term Income Fund, a construction loan fund and the Boston Capital Long Term Mortgage Fund, a fixed-rate, forward permanent financing fund. The funds can be used together to create a true one-stop shop for affordable housing developers.
BCF originates construction, permanent and construction/permanent loans in sizes between $1,000,000 and $18,000,000. BCF's previous fund, the Boston Capital Affordable Housing Mortgage Fund LLC, has fully invested its $115 million in capital in 36 loans. BCF continues to service the portfolio.
In addition to its debt products, Boston Capital provides equity for affordable multifamily housing developments and recently closed Corporate Fund XXXVI, a $150 million equity fund. Boston Capital recently launched Corporate Fund XXXVII, a $140 million equity fund which is expected to close in the first quarter of 2013.
About Boston Capital
Boston Capital, headquartered in Boston, MA, is a real estate investment and advisory firm specializing in tax advantaged investments in affordable multifamily housing and energy, and equity investment in market rate apartment communities. Boston Capital's holdings include more than 2,260 multifamily apartment properties in 49 states and the District of Columbia, constituting more than 155,520 apartments with a development cost in excess of $14.3 billion. Boston Capital is the largest owner/investor of apartment properties in the United States.