Jackson Valley Apartments
$22.9MM Loan Request
$22.9MM Loan Request
420-Units in Jackson, MS
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Requested Loan Terms
|Loan Purpose||Renovation Financing|
|Stabilized DY (Year 3)||10.2%|
1 With standard bad-boy carve outs & environmental indemnities
Greystone & Cos., Inc. (“Greystone”) is seeking loan proposals to finance the rehabilitation and lease-up of a 420-unit multifamily property located in Jackson, Mississippi. The Property is divided into four parcels that contain 26 buildings. The Property is closely located to Jackson State University, Belhaven University, and Ashburry University, making the Property an attractive housing option for students in the area It is also near the Metrocenter Mall, a Walmart Supercenter, and several popular retail corridors.
The Sponsor purchased the Property in 2018 and has since completed the renovation and lease-up of 144 units. In November 2021, a fire destroyed 24 of these units and they currently require further renovations. The Sponsor also plans to renovate the remaining 276 units which were uninhabitable at the time of purchase. They will complete these renovations parcel by parcel, subsequently leasing these units at rents currently being achieved at the Property. The existing lender has not financed any unit renovations since the start of the COVID-19 pandemic.
The Sponsor’s current cost basis is $11.3MM and they have funded approximately $3.4MM (30%) of these cost to date. They will fund an additional $2.3MM in cash equity to close this refinance, increasing their total cash in the deal to $5.7MM (20% of cost). The Property is projected to stabilize in year 3 of the loan term at which point it will generate a 10.2% NOI debt yield.
|Sources||Total $||Uses||Total $|
|Debt||$22.9MM||Repay Existing Debt - Buildings 1 & 2||$6.9MM|
|Existing Sponsor Equity||$3.4MM||Repay Existing Debt - Buildings 3 & 4||$1.1MM|
|Additional Sponsor Equity||$2.3MM||Renovation Cost - Building 2 & 24 Units in Building 1||$5.0MM|
|Renovation Cost - Buildings 3 & 4||$9.5MM|
|Equity Funded to Date||$3.4MM|
Key Property Details
|Property Name||Jackson Valley Apartments|
|Property Address||1595 W Highland Dr, Jackson, MS 3920|
|Property Website||Click Here|
|Avg In-Place Rent||$755|
|Avg Unit Size||839|
|Year(s) Built||1974 / 2016 / 2018 - Present|
|Number of Buildings||26|
|Assessors Parcel Number(s)||15-23-29-0146-00-040, 15-23- 29-0146-00-060, 15-23-29-0146-00-110|
|# of Currently Renovated Units||120|
|% of Portfolio||29%|
|Avg. In-Place Rent for Renovated Units||$755|
|# of Currently Unrenovated Units||300|
|% of Portfolio||71%|
|Avg. Projected Market Rent||$818|
|Estimated Renovation Cost ($ / Unit)||$48,233|
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©2022 Greystone & Co. II LLC. All rights reserved. References to the term “Greystone,” refer to Greystone & Co. II LLC and/or its affiliated companies, as applicable. All loans are originated through its affiliates Greystone Servicing Company LLC (GSC) and Greystone Funding Company LLC (GFC).
Although the information contained herein has been obtained from sources deemed reliable, Greystone makes no express or implied guaranty, warranty, or representation that the information is complete or accurate. Further, any projections, opinions, assumptions, or estimates used or offered herein are for the purpose of example only and do not and cannot be deemed to represent the present or future performance of the subject property. Accordingly, Greystone recommends that you conduct your own investigation of the property in order to reach your own conclusions or opinions as to value of the property. Physical condition of the property, including without limitation the potential presence of mold, asbestos, lead based paint, and hazardous materials may affect the property, its value, and may, if present, pose health risks. The property should be independently examined by experts selected by you. Any recipient of these materials from Greystone should not and may not rely on these materials for any purpose beyond general introductory information concerning the property.
Submission of HUD application subject to (i) execution and delivery of Greystone then current form of HUD engagement letter and (ii) underwriting and qualification of the borrower and project, and timely submission of all information necessary from borrower to underwrite and process the HUD insured loan and prepare the HUD application.
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