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Nov. 15, 2018
Denver-based Steele Properties LLC has acquired 144 multifamily units in Sioux Falls.
Built in 1970, the properties now called The Whittier Apartments were known as the Heritage Apartments at 1818 E. Third St. and the Rolling Hills Townhouses at 614 N. Lewis Ave.
Heritage Apartments serves elderly residents and contains three two-story buildings with elevators and 96 units with a mix of studio and one-bedroom apartment homes on 2.5 acres. Rolling Hills serves families and consists of four two-story town homes with 48 units with a mix of three- and four-bedroom apartment homes on 4.6 acres.
Steele, a national real estate investment and development company, will spend an estimated $15 million on the acquisition and renovation of the property
The properties will receive more than $45,000 per unit in rehabilitation work, according to Steele, including new siding, new roofs, new lighting, windows, HVAC systems and electrical upgrades as well as energy-efficiency improvements. Apartment homes will receive interior upgrades, including new kitchens and bathrooms. Project amenities include an updated community center and leasing office with computer niche, new playground, new pavilion with picnic area and upgraded laundry rooms.
This project is financed with 4 percent tax credits allocated by the South Dakota Housing Development Authority, tax-exempt bonds issued by SDHDA, permanent and construction financing provided by Citibank, and tax credit equity provided by the National Equity Fund.
It marks Steele’s second acquisition in South Dakota and now brings more than 6,000 units to Steele’s national portfolio. Monroe Group Ltd., Steele’s management partner, will oversee property management. Both properties were managed by Costello Cos.
“We are pleased that we have been able to preserve more than 6,000 affordable-housing units nationwide, including 144 much-needed units in Sioux Falls. Through this important public and private partnership involving South Dakota Housing Development Authority, the U.S. Department of Housing and Urban Development, Citibank and NEF, we are committed to ensuring everyone has access to safe, comfortable and quality housing they can afford, especially as our country faces an affordable housing crisis,” said Chad Asarch, principal of Steele Properties.
Steele specializes in the acquisition, rehabilitation and new construction of affordable family and senior rental properties. The company was formed in 2006 with the mission to preserve, improve and increase affordable-housing opportunities for vulnerable communities across the country. Steele has completed over $900 million in acquisitions, sales and development activity involving over 60 properties and more than 6,000 apartment units, including over 50 tax-credit projects.
Tzadik Management, a Miami-based real estate and property management company, acquired 721 units in Sioux Falls last month.
Denver-based Steele Properties LLC has acquired the 144 multifamily units in Sioux Falls.