Lincoln Avenue Communities (LAC) has acquired Tivoli Place, a senior housing complex in New Orleans, and announced plans for an extensive rehabilitation of the property.
The company – which is headquartered in Santa Monica, California, and focuses on owning, developing, and investing in affordable housing properties – said this was its first rehabilitation using Historic Tax Credits and its first in Louisiana. As a part of the renovation, LAC will invest more than $35 million to upgrade the century-old building, preserving its historic structure and ensuring it remains designated senior affordable housing.
Tivoli Place was built in 1917 and provides 163 units of affordable housing for seniors earning no more than 20%-60% of the Area Media Income. Further, the property’s 8 total 20% AMI units are set aside for Special Needs Households. The development is further covered by a federally subsidized Housing Assistance Payment contract that has been renewed for an additional 20 years in conjunction with the rehabilitation. LAC is planning upgrades to the building’s HVAC system, the replacement of old plumbing and the raising of ceiling heights in each unit. New community amenities will include a media room, library, fitness center, dining room, bike storage, security upgrades, and health care exam room.
“LAC is honored to grow our affordable housing portfolio through the acquisition of such a historically significant property,” said LAC CEO Jeremy Bronfman. “As rent pressure remains high in New Orleans, this historic rehabilitation will preserve access to affordable senior housing while enhancing the Tivoli Place community and providing important new services for residents.”
The deal was financed through Low Income Housing Tax Credit equity from Boston Financial syndicating to Capital One; federal and state Historic Tax Credits, in partnership with JP Morgan Chase and Stonehenge, respectively; tax-exempt bonds by the Louisiana Housing Corporation; a HUD 221(d)4 loan serviced by Capital One; an equity bridge loan from Huntington National Bank; a PILOT agreement with Finance New Orleans; and solar tax credit equity being syndicated by Boston Financial.