Stone Hogan, Atlanta, GA

Villas at Stone Hogan (192 Unit Elderly)
Total Project Cost $66,679,463
&
Flats at Stone Hogan (256 Unit Family)
Total Project Cost $97,586,950

Zimmerman Properties, LLC and Zimmerman Properties SE, LLC (collectively, “Zimmerman”) is pleased to announce the closing of the Stone Hogan developments in Atlanta, GA. Zimmerman acquired a 22.77-acre land tract on October 29, 2022 for the Stone Hogan developments and it has taken 24 months to complete the plans, specifications, and underwriting.

Villas at Stone Hogan

Villas at Stone Hogan (“Villas”) will be a 192-unit apartment community designed especially for residents aged 55+ and will be 100% affordable under the federal income averaging policy with rents and income levels set at 40%, 50%, 60% and 70% of the local area median income. The community will include a stand-alone parking deck, 4 residential buildings and a clubhouse.

Villas is owned by Villas at Stone Hogan, LP, a limited partnership with Stone Hogan Housing, LLC as the 0.01% General Partner, Raymond James Housing Opportunity Fund 81, LLC as the 98.99% limited partner and federal investor, and ATEP Stone Hogan Villas-GA, LLC as a 1.0% state limited partner and state investor. The General Partner has Zimmerman Properties SE, LLC as the Managing Member with TS Stone Hogan, LLC as an additional member.

Villas will be managed by Wilhoit Properties, Inc. and co-managed with Atlanta Housing. Villas is being developed by Stone Hogan Development, LLC which is owned by Zimmerman Properties SE, LLC as the Managing Member, with TS Stone Hogan, LLC as an additional member. Atlanta Housing is also serving as a co-development partner. Villas has drawn up a construction contract with Summit Contracting Group, Inc., who will be the general contractor.

Atlanta Housing is purchasing the Villas land tract from Zimmerman for $2,877,000 and will enter a long-term ground lease with Villas at Stone Hogan, LP, exempting the project from real estate taxes.

Zimmerman obtained a tax-exempt bond volume cap from Georgia Department of Community Affairs (DCA) in the amount of $32,805,000 which will qualify Villas to be eligible for 4% federal and state low-income housing tax credits in the amount of $31,130,000 over the ten year tax credit period. Zimmerman engaged Key Bank Capital Markets (“Underwriter”) to work with Urban Residential Finance Authority of the City of Atlanta, Georgia (“Issuer”) and Kutak Rock (“Bond Counsel”) to structure the sale of the tax-exempt bonds via a public offering. The bonds were structured as $17,547,000 of long-term bonds consistent with a Fannie Mae MTEB execution (Series A Bonds) and $15,258,000 of short-term bonds for construction (Series B Bonds).

Zimmerman also engaged Key Bank, N.A. to underwrite a Fannie Mae MTEB permanent loan. Fannie Mae / Key Bank have issued a forward commitment of $15,952,000 for permanent financing under the MTEB program. The loan will have a 35-year amortization at a 5.38% fixed interest rate with an anticipated closing date of May 1, 2029 and will be interest-only until June 1, 2032. The MTEB structure requires that the underlying bonds be cash collateralized until the Fannie Mae loan closes. The Fannie Mae loan also allows Villas to draw up to 110% of the loan commitment if rental income rates increase before loan closing and the transaction meets all other underwriting benchmarks.

Bank of America is providing Villas with a $42,500,000 construction loan; of which $32,805,000 will be funded directly to the Bond Trustee and used to cash collateralize the MTEB structure (i.e., every dollar of bond proceeds advanced to the Project will be cash collateralized by the construction loan through construction completion).

Atlanta Housing will also be providing subordinate financing in the amount of $2,623,000 at a 2% interest rate for a 40-year term.

Flats at Stone Hogan

Flats at Stone Hogan (“Flats”) will be a 256-unit apartment community designed especially for families and will be 100% affordable under the federal income averaging policy with rents and income levels set at 40%, 50%, 60% and 70% of the local area median income. The community will include a stand-alone parking deck, 6 residential buildings, and a Clubhouse alongside a Swimming Pool and Early Learning Center.

Flats is owned by Flats at Stone Hogan, LP, a limited partnership with Stone Hogan Housing 2, LLC as the 0.01% General Partner, Raymond James Housing Opportunity Fund 81, LLC as the 98.99% limited partner and federal investor, and ATEP Stone Hogan Flats-GA, LLC as a 1.0% state limited partner and state investor. The General Partner has Zimmerman Properties SE, LLC as the Managing Member with TS Stone Hogan, LLC as an additional member.

Flats will be managed by Wilhoit Properties, Inc. and co-managed with Atlanta Housing. Flats is being developed by Stone Hogan Development, LLC which is owned by Zimmerman Properties SE, LLC as the Managing Member and TS Stone Hogan, LLC as an additional member. Atlanta Housing is also serving as a co-development partner. Flats has drawn up a construction contract with Summit Contracting Group, Inc., who will be the general contractor.

Atlanta Housing is purchasing the Flats land tract from Zimmerman for $3,836,000 and will enter a long-term ground lease with Flats at Stone Hogan, LP, exempting the project from real estate taxes.

Zimmerman obtained a tax-exempt bond volume cap from Georgia Departments of Community Affairs (DCA) in the amount of $47,295,000 which will qualify Flats to be eligible for 4% federal and state low-income housing tax credits in the amount of $45,840,000 over the ten-year tax credit period. Zimmerman engaged Key Bank Capital Markets (“Underwriter”) to work with Urban Residential Finance Authority of the City of Atlanta, Georgia (“Issuer”) and Kutak Rock (“Bond Counsel”) to structure the sale of the tax-exempt bonds via a public offering. The bonds were structured as $26,285,000 of long-term bonds consistent with a Fannie Mae MTEB execution (Series A Bonds) and $21,010,000 of short-term bonds for construction (Series B Bonds).

Zimmerman also engaged Key Bank, N. A., to underwrite a Fannie Mae MTEB permanent loan. Fannie Mae / Key Bank have issued a forward commitment of $23,896,000 for permanent financing under the MTEB program. The loan will have a 35-year amortization at a 5.38% fixed interest rate with an anticipated closing date of May 1, 2029 and will be interest-only until June 1, 2032. The MTEB structure requires that the underlying bonds be cash collateralized until the Fannie Mae loan closes. The Fannie Mae loan also allows Flats to draw up to 110% of the loan commitment if rental income rates increase before loan closing and the transaction meets all other underwriting benchmarks.

Bank of America is providing Flats with a $63,500,000 construction loan, of which $47,295,000 will be funded directly to the Bond Trustee and used to cash collateralize the MTEB structure (i.e., every dollar of bond proceeds advanced to the Project will be cash collateralized by the construction loan through construction completion).

Atlanta Housing will also be providing subordinate financing in the amount of $3,164,000 at a 2% interest rate for a 40-year term.