LUBBOCK, TX (October 2024) – LEDG Capital, a private company dedicated to the preservation and creation of affordable housing, today announced the completion of a $12 million project to modernize 244 apartments at two multifamily communities in Lubbock, delivering new heating and air conditioning systems, kitchens, bathrooms, flooring and other improvements to residents.

The 11-month renovation focused on extensive upgrades at two adjacent communities – a 144-unit Low Income Housing Tax Credit and Section 8 complex for families built in 1978 and an adjacent 100-unit Section 8 and market-rate development originally constructed in 1973.

“This project delivered much-needed interior and exterior upgrades to the entire community, converted 60 market-rate units to affordable apartments and protected affordability for decades to come,” said Jacob Levy, founding partner of LEDG Capital. “We are grateful to our local, state and federal partners for working with us on this effort and to the residents for their patience while work was underway.”

As a result of the project, all 244 units on the combined property, now known as Southstead Apartments, are affordable to households earning 30 and 60 percent of the Area Median Income (AMI).

The 20-acre community features 11 two-story garden-style apartment buildings and 14 single-story buildings. In addition to extensive upgrades to kitchens, bathrooms and HVAC systems, LEDG Capital’s rehabilitation effort brought the community new roofs, a new playground, a new security system with improved outdoor lighting, new WiFi access in the community buildings, new exterior painting, new or updated pedestrian pathways and parking areas, and upgraded trash enclosures.

In addition, 14 units were upgraded to achieve handicapped accessibility, and five apartments were also made accessible to residents with hearing or visual impairments.

The Lubbock Housing Finance Corporation (LHFC), a public non-profit corporation that partners with the private sector to create housing for low-to-moderate income citizens, provided tax-exempt bond financing for the project, which enabled LEDG Capital to secure an allocation of Low-Income Housing Tax Credits from the Texas Department of Housing and Community Affairs.

“Lubbock HFC is pleased to have played a role in increasing the supply of quality apartment homes that are affordable to working families in our community,” said LHFC Executive Director Shari Flynn.

Merchants Capital, a leading multifamily lender, provided LEDG with a construction bridge loan and a permanent loan for the project.

“The extensive upgrades will improve the daily quality of life for residents, while also enhancing the greater Lubbock community,” said Ayanna Grasty, vice president of Originations at Merchants Capital. “We are very pleased to have played a role in supporting LEDG Capital in delivering 244 safe, high-quality affordable homes to families at Southstead Apartments and congratulate them on preserving affordable housing options in the area for decades to come.”

CREA, LLC, served as syndicator.

“Having partnered with LEDG on seven previous communities, we were thrilled to be working alongside their team again for the rehabilitation of Southstead Apartments,” said Senior Vice President Richard Shea, originator at CREA. “Improvements to the existing development are just the first step in providing safe, affordable housing to Lubbock residents. The supportive services provided on-site, from health fairs and a food pantry to social gatherings and recreational activities, will enrich the lives of those who call Southstead home.”

The Southstead project began in October 2023 and was executed as a phased, in-place renovation in which groups of households spent daytime hours in hospitality suites while their apartments were modernized. WinnResidential, the award-winning property management affiliate of WinnCompanies and the largest manager of affordable housing in the United States, worked with households to coordinate the relocation process at the two properties.

Langerman Construction, a full-service general contracting company specializing in interior and exterior multifamily property renovations throughout the United States, served as general contractor for the work.

The Southstead project is the 17th renovation of an affordable housing community completed by LEDG Capital. Since 2018, the company has invested $166 million to substantially upgrade communities in 10 states – Arizona, Arkansas, California, Florida, Louisiana, Missouri, Pennsylvania, Texas, Utah and Washington.

ST. LOUIS, MO (February 2025) – LEDG Capital, a private company dedicated to the preservation and creation of affordable housing, today announced it has commenced a $5.5-million renovation to modernize the Ridge Crest Apartments, an 84-unit affordable housing community in the city’s Marine Villa neighborhood.

The terms of LEDG’s acquisition of the property will preserve the apartments at Ridge Crest as affordable housing for the next 30 years, meaning that rent and income restrictions will continue based on federal thresholds.

The company’s 12-month renovation effort will update all apartments at the 60-year-old community, address the capital needs of its three buildings, improve amenities for residents, and strengthen security at the property. In addition, the project will continue to support an ongoing program of supportive services, after-school enrichment and community events.

“We’re pleased to have had the opportunity to protect the long-term affordability of this community at a time so many households in the St. Louis area are struggling with high rent burdens,” said Matthew Kassel, senior director of development for LEDG Capital. “The much-needed capital improvements will improve the quality of life for residents, thanks to strong support from the Missouri Housing Development Commission, the City of St. Louis, and the Industrial Development Authority of the City of St. Louis.”

The Industrial Development Authority of the City of St. Louis provided private activity bonds to support the renovation effort, while the Missouri Housing Development Commission approved Low-Income Housing Tax Credits, and the U.S. Department of Housing & Urban Development approved a new Project-Based Section 8 contract.

Citibank, N.A., served as the primary lender for the project. “We are excited to be a financing partner to LEDG Capital as they preserve affordability for the tenants at Ridge Crest Apartments,” said Selina Mendoza, Vice President, Citi Community Capital. “We provided construction and permanent phase financing, facilitating a renovation that will benefit the community at Ridge Crest Apartments.”

Walker & Dunlop, Inc., served as the equity partner in the transaction. “This financing marks a key step in our mission to support inclusive and sustainable communities,” said Jennifer Erixon, senior managing director of Affordable Housing at Walker & Dunlop. “Ridge Crest Apartments is a true reflection of our dedication to offer affordable housing solutions that improve residents’ quality of life while boosting the economic vitality of underserved areas. We are grateful for our continued partnership with the LEDG Capital team and look forward to this revitalized community continuing to serve for many years ahead.”

Interior scope upgrades will include new cabinets and countertops, vinyl plank flooring, kitchen and bathroom fixtures, appliances, interior paint, new HVAC and water heating systems, new LED lighting fixtures, and mobility upgrades to five units.

The exterior scope of work will include reroofing all buildings; replacing gutters and downspouts; repairing siding and brick façade; repairing aging water and waste lines; repainting of building exteriors; improve and repairing landscaping and parking lots; upgrading security cameras, vehicle gates and fencing; installing a new playground; and improving handicapped accessibility.

The start of work at Ridge Crest comes as LEDG Capital approaches the halfway mark in its $15 million renovation effort at another St. Louis multifamily property – Aboussie Pavilion Apartments, a 273-apartment, low-income, senior housing community that is the largest Section 8 location in the city.

The Aboussie Pavilion project, which began in January 2024, is following a similar scope of work for renovations, preserving the community’s rent and income restrictions for 30 years, and converting numerous apartments to make them accessible to seniors with disabilities and limited mobility.

Property management at Ridge Crest will be overseen by WinnResidential, the award-winning property management arm of WinnCompanies, one of the nation’s largest operators of affordable housing.

Langerman Construction, a full-service general contracting company specializing in multifamily property renovations, is serving as general contractor for the work, using plans from Benton Design Group, an architectural firm based in St. Charles, MO. A significant portion of the subcontracting work will be awarded to local Minority and Women-Owned Business Enterprises.