Vesta Corporation has announced that it closed on financing and is now undertaking the complete rehabilitation and redevelopment of Villa Serena Apartments, a 242-unit apartment community in Mayfield Heights, Ohio. Construction on the property will begin this month and with a total development cost of $20.9 million, the community will undertake a substantial renovation including new carpeting, flooring, paint, cabinets, and fixtures.Major building systems and common areas will also be upgraded, including a new sprinkler system, energy-efficient roof system, new parking lots, new building entry suite, and a wireless emergency call system in every apartment.
The physical renovation will be accompanied by an upgrade in Villa Serena’s social services. A full-time resident services coordinator will help residents navigate assistance programs and take full advantage of their entitlements. Villa Serena residents will also benefit from on-site visiting medical services and transportation to shopping, medical appointments, and other destinations.
The deal was financed through a variety of affordable housing funds and initiatives. In 2013, on behalf of the St. Francis Foundation, Vesta prepared their plan and was awarded the 9% LIHTC’s for Villa Serena Apartments. In addition, on behalf of the St. Francis Foundation, Vesta was one of twelve developers in the country to be awarded a federal Senior Preservation Rental Assistance Contract (SPRAC), another program designed to prevent low-income seniors from being displaced from their HUD-supported housing. Combined with an FHA First Mortgage, the LIHTC award, and the $2 million, 20 year subsidy will finance most of the estimated $40,000 per-apartment cost of the renovation.
History and Track Record
“Villa Serena and the St. Francis Foundation elected to partner with Vesta Corporation based on its history of successfully redeveloping affordable housing communities both in and outside of Ohio.” Says Thomas Pitrone, the St. Francis president, who spearheaded the effort to find financing for the renovation. “Vesta’s commitment to building learning/community centers and providing social services when possible was another important factor.”
“We are pleased to be a part of the team that will help to preserve this important and needed affordable housing community for Northeast Ohio Seniors” says Lewis Brown, Vice President of Vesta Corporation. “The collaborative nature of the project will be of interest to anyone who is concerned about the future of affordable housing for our rapidly aging demographic.”
About Vesta Corporation
Headquartered in Weatogue, Conn., Vesta Corporation develops, manages and owns affordable housing. Vesta specializes in redeveloping distressed, affordable housing communities, adding value through revitalization, sound management, and by investing in both the company’s real estate and its residents. Since 1981, Vesta principals Steven Erie and Arthur Greenblatt have closed approximately $1 billion in financing. Vesta currently manages 29 affordable housing communities in Connecticut, New Jersey, Ohio and Washington, D.C with nearly 5,000 apartments. Visit Vesta online at www.vestacorp.com
