St. Mary Development Corp. and Related Affordable announced that they plan to invest more than $48 million to rehab five affordable apartment communities that were built in the 1970s and that officials say are outdated and need updates.
The Dayton area has a multitude of derelict properties that are still standing, but were allowed to decline for so long that they would now be very challenging to renovate. These groups are stepping in before that point.
“We often talk about the need to create new affordable housing, but the need is just as great to preserve our existing affordable housing,” Denise Blake, vice president of real estate development for St. Mary Development, said in a prepared statement. “We’ve seen affordable apartments close because of their poor condition and lack of resources to rehab them. We can’t allow that to happen in our community.”
567 units preserved
St. Mary Development, a nonprofit based in East Dayton, said it has partnered with Related Affordable to rehabilitate and modernize five apartment complexes in Montgomery County.
This includes the 182-unit Northcrest Gardens (aka Eagle Ridge) in northwest Dayton and the 119-unit Ashbury Apartments in the city’s McPherson Town neighborhood.
St. Mary Development and Related Affordable also will be updating the 74-unit Mad River Manor in Riverside and the 112-unit Albright Apartments and the 80-unit Pinewood Gardens in Trotwood.
St. Mary says the rehab projects will improve the homes of 374 families (with more than 500 children), plus other housing units that are occupied by about 190 seniors. The average cost of renovation per unit will be about $84,000.
The properties will undergo roof and window replacements, brick and parking lot repairs, HVAC system and elevator modernization and upgrades to common areas and amenities.
Residential units will get new lighting, flooring, painting, cabinets, counters and kitchen appliances.
Work is expected to begin in early 2025 and the bulk of construction should be completed by the end of the year.
Blake said Related Affordable is a great partner because the company has the capital to buy large portfolios of properties and then collaborate with local partners to fix them up.
“The greater Dayton area doesn’t have investors with the expertise, funding and appetite to tackle these difficult preservation projects,” Blake said.
St. Mary first worked together with Related Affordable on a $20 million rehab of the Biltmore Towers, which is a 230-unit apartment building for seniors on North Main Street in downtown Dayton.
Related decided to work again with St. Mary after acquiring a portfolio of properties that included the five local apartment communities.
Related Affordable is a division of Related Companies, which says it has more than 55,000 affordable residences in cities across the nation.
“Related has over five decades of experience developing and preserving affordable housing across the country, and we look forward to doing our best to provide quality homes and services for residents,” said David Pearson, executive vice president of Related Affordable, in a prepared statement.
Officials say all five apartment communities are fully occupied. St. Mary says the average annual income of its residents is about $14,000.
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