Affordable apartments developer pursues more projects
Monthly rent at The Paddock at Grandview to range from $567 to $835
Affordable apartments developer pursues more projects Monthly rent at The Paddock at Grandview to range from $567 to $835 Check out this story on Tennessean.com: http://tnne.ws/1tpTIfP
Getahn Ward, gward@tennessean.com Published 11:27 p.m. CT June 14, 2016 | Updated 7:20 p.m. CT June 16, 2016
Mayor Megan Barry (left) is assisted by Christi L. Robinson of developer LDG Development in removing the leadership piece of the puzzle at groundbreaking for The Paddock at Grandview.(Photo: Metro Nashville)
The one-, two- and three-bedroom Paddock of Grandview apartment units will range between 839 to 1,100 square feet in size.
The units will be reserved for families who earn up to 60 percent of the area median income, or $41,000 annually for a family of four.
Developer LDG is pursuing other project sites along West Trinity Lane, up Dickerson Pike and other areas where the city council member supports affordable housing.
Under the so-called PILOT, LDG will pay a certain amount each year over a decade in lieu of paying property taxes.
The Louisville-based developer who broke ground Tuesday on a 240-unit affordable housing apartment project on West Trinity Lane is scouting the Nashville area for additional project sites.
"We're looking all along West Trinity Lane, up Dickerson Pike," said Evan Holladay, development manager with LDG Development. "We're looking in areas where city council members really support affordable housing and are getting behind it."
Over the next 15 months, LDG's $34 million Nashville debut project called The Paddock of Grandview will rise on 14 acres next to Jack's Bar-B-Que. Monthly rent will range from $567 to $835 for the apartment units, which will be between 839 to 1,100 square feet.
Jack's Bar-B-Que owner Jack Cawthon, who co-chairs community group Nashville North By Northeast United, hopes that the apartment project encourages other investments in the area that he considers ripe for development. "They're setting the example," he said about LDG.
Chris Dischinger, owner of LDG Development, speaks during groundbreaking for The Paddock at Grandview in northeast Nashville. (Photo: Metro Nashville)
Speaking at the groundbreaking ceremony, Mayor Megan Barry stressed the importance as Nashville grows of investing in affordable and workforce housing along the city's major corridors, especially for families making less than $40,000 a year.
The Paddock of Grandview marks the first time funds were made available through the city's payment-in-lieu of tax program administered by the Metro Development and Housing Agency to help fund an affordable housing development.
"It's how we're going to do our private-public partnerships and we need those to happen more," Barry said. "This partnership, I believe, is the model of how we're going to do future development and I want to see more agreements like this."
Financing for The Paddock of Grandview project includes $1.7 million in HOME Investment Partnerships Program funds awarded by the U.S. Department of Housing and Urban Development and administered by MDHA. The package also includes $12 million in low-income tax credits financed by R4 Capital and $2 million in developer equity. There's also a $19.7 million HUD-insured Love Funding Corp. mortgage for the new construction of The Paddock at Grandview.
Nashville Mayor Megan Barry (Photo: Metro Nashville)
The apartment project will include 10 three-story residential buildings, a clubhouse, swimming pool and other amenities. The one-, two- and three-bedroom units will be reserved for families who earn up to 60 percent of the area median income, or $41,000 annually for a family of four.
"You won't be able to tell it from market-rate communities down the street," said Chris Dischinger, co-founder and co-principal in LDG Development.
He expects the first units to be ready in around 11 months with full completion expected within 15 months. Enfield Management will manage the apartments, which will be built by a joint venture of construction company Weber Group and LDG.
Corey Jenkins, who works for the area's Metro Councilman DeCosta Hastings, said he's trying to get LDG to do another project in District 2. "We're trying to get as much as we can get," he said.
Reach Getahn Ward at 615-726-5968 and on Twitter @getahn.
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