Silverwood Acquires 305 Affordable Apartments in Virginia
Virginia-based Silverwood Companies has led a group of local investors in acquiring The Fields of Westover, a 305-unit, low-income apartment community located in Falls Church. The new ownership plans to invest approximately $4 million to renovate the one- and two-bedroom apartments, to be renamed East Falls Apartments.
The 12.4-acre property, comprising 60 two-story buildings, was renovated and converted to affordable housing in 1996 by the seller, Willston Commons, LLC, a partnership of a local multifamily real estate developer and a national investor in the low-income housing tax credit program.
The Virginia Housing Development Authority (VHDA) provided $27 million in new tax-exempt bond financing for the acquisition. The new ownership assumed a $3.2 million taxable VHDA loan. Total acquisition and renovation costs are about $35 million.
Silverwood’s renovations will include refurbished kitchens and baths with new vinyl flooring, and replacing old seasonal energy-efficient heat pumps with newer units. Other improvements will include new roofs, renovated entries and hallways, repaved parking lots, new dumpster enclosures, and extensive landscaping. In addition, Silverwood will build a new 900-square-foot community building.
Silverwood will continue managing East Falls Apartments as an LIHTC community, with 100 percent of the apartments allocated to individuals and families who earn 60 percent or less of area median income. “East Falls Apartments are at 92 percent occupancy and we intend to increase that to 98 percent or higher,” said Mark Silverwood, president.
According to Silverwood, the company stopped buying property in 2005 “because the local markets had become overpriced.” Now, “for the first time in four years, we have finally seen a deal that we can finance, purchase, improve, and continue to operate.” He anticipates his company will acquire several properties during 2010.