Wingate Companies acquires North Deering Gardens Apartments
Property will undergo a LIHTC syndication, along with a large rehabilitation scope
PORTLAND, MAINE (April 15th, 2022) – 246 Auburn Associates, LLC, an affiliate of Wingate Companies of Newton, Massachusetts, is proud to welcome North Deering Gardens, in Portland, Maine to its ownership and management portfolio. The Company acquired the 164-unit apartment community on February 28th, 2022.
The property consists of one, two, and three bedroom townhouse-style apartments, each with direct entrance access. There are 17 two-story residential buildings and one central leasing office, which includes the property’s community amenities.
Originally constructed in 1972, North Deering Gardens was re-developed in 1999 using Low Income Housing Tax Credits (LIHTC) issued through Maine State Housing Authority (the “MHSA”). While the 15-year compliance period expired in 2014, the existing affordability restrictions extend through 2029. Under the current restrictions, the Property is required to rent 114 units to residents earning at or below 60% of Area Median Income (AMI). Additionally, 33 units are restricted to residents whose incomes do not exceed 50% of AMI. As of today, there are no rent restrictions on the remaining 17 market-rate units.
In 2022, Wingate plans to syndicate a 4% LIHTC transaction that will facilitate a comprehensive capital rehabilitation plan for the property at an estimated of hard cost of $10 million. The rehabilitation will focus on those items needed to ensure the long-term capital needs of the property, including exterior siding and trim, replacement of interior/exterior doors, wood deck replacement, amenity upgrades to the playground and package system, upgrades to the laundry room, landscaping improvements, irrigation system and grading improvements, paving, and unit interior upgrades.
Upon the completion of the rehabilitation of the property, Wingate plans to convert the 17 market-rate units to affordable units, restricted at 60% of AMI. It is the intent of Wingate to utilize the Acquisition and Rehabilitation Federal Low-Income Housing Tax Credit Program to make certain improvements to the Property. The capitalization will be accomplished with the use of Federal LIHTC Equity in conjunction with construction and subsequent permanent financing provided by MSHA.
“We are pleased to have represented the seller, Auburn Terrace, LLC and procured the buyer, 246 Auburn Associates, LLC, an affiliate of Wingate Capital,” noted Biria St. John, Vice Chairman at CBRE. “The seller had redeveloped the property in the late 1990’s, undertaking a substantial tax credit rehabilitation at that time. Since then, they have reinvested a significant amount of capital and continued with the affordable tax credit program, while at the same time offering resident services to meet the overwhelming need for affordable housing in the Portland metro. We are pleased to see Wingate take over this asset, and we look forward to seeing the additional improvements they plan to make and are pleased that they plan to preserve the affordability.”
“We are happy to help move this renovation forward by providing the financing for this development,” said Daniel Brenna, Director at Maine Housing. “This work will preserve a large number of affordable apartments, in a part of our state that desperately needs them, for decades to come.”
Michael Siciliano, Wingate’s Senior Vice President of Acquisitions and Development, stated, “We’re honored that Maine Housing has put their trust in us to deliver high-quality apartments homes for current and future families living at North Deering Gardens. We’re excited about the opportunity to redevelop, preserve and enhance affordable housing in the state of Maine.”
With the addition of North Deering Gardens to Wingate’s portfolio, the Company now operates in 19 states. For more information on North Deering Gardens, please visit www.NorthDeeringGardens.com.
Wingate Companies is a multi-faceted real estate firm specializing in property management, investment, finance, consulting and sales throughout the United States. With a 60-year track record of success, the company manages more than 19,150 residential units in 19 states. With a strong focus on affordable housing, the company aims to provide beautiful and healthy communities – inspired by a common purpose. Their motto, It’s All About Home, resonates in all that they do- from development to management. For more information, please visit www.WingateCompanies.com.