Churchill Stateside Group completes record $42.6 million USDA Rural Development 538 loan in Flagler Beach, Florida.

Due to the growing demand and growing competitiveness of the tax credit market, we strongly believe that workforce housing projects like this will play a major role in affordable housing for the foreseeable future. .

Churchill Stateside Group, LLC (CSG), a real estate and renewable energy financial services company, is pleased to announce the closing of financing for a new construction workforce housing project. works in Flagler Beach, Florida. Preserve at Flagler will include 240 units intended for family rental. The capital stack consists of a USDA Rural Development 538 Option 3 construction advance loan and private equity. CSG provides USDA Rural Development Loan 538 for a total amount of $42,600,000. According to USDA online data, this is the largest 538 loan in the history of the program and breaks the previous record of nearly $31 million, a project also funded by CSG and developed by the same team. of development.

Dan Duda, Senior Vice President and National Director of Origins and Acquisitions for CSG, said, “We are proud to be a financial partner of Preserve at Flagler, as it will make a significant contribution to meeting the need for housing for the workforce in the community of Flagler Beach, Florida. . We very much appreciate our partnership with the development team comprised of Piedmont Private Equity, Portage Real Estate and American South Real Estate Fund on this transaction. Additionally, we value our partnership with USDA Rural Development through the USDA 538 Loan Guarantee Program. The USDA recently reduced its ongoing and annual guarantee fees, which helped make financing more affordable for the sponsor. »

Lead project developers, Eric Conkright of Piedmont Private Equity and John Cattano of Portage Real Estate, said: “Our development team has noticed an underserved tenant base between high-rent Class A apartment projects and subsidized low-income apartments. Threading that needle is difficult enough without voluntary construction and permanent debt partners like Churchill and the USDA-RD. We have found a great niche by focusing on high-quality projects catering to the workforce in high-growth emerging markets in the Southeastern United States, such as the Flagler County submarket in Florida. , as developers have focused more on Jacksonville and the Del-tona (Deland/Daytona Beach) MSA, bypassing Flagler County, leaving a gap in housing supply. A Class A housing project like the 240-unit Preserve at Flagler Beach apartment community has garnered praise and support from City Council and the local community, in an area where less than 1% of housing supply is for rent, and will provide housing for hospitality and retail workers closer to local employers. Projects like ours will not only attract the workforce, but also the empty nests and other residents looking to relocate to the “hip little town” as the locals call it the town of Flagler Beach, where the project will be approximately one mile from the ocean and include weekend shuttle service for residents.

Keith Gloeckl, Managing Director of CSG, added, “Due to growing demand and growing competitiveness in the tax credit market, we strongly believe that workforce housing projects like this These will play a major role in affordable housing for the foreseeable future. We are thrilled to partner with USDA-RD on this transaction and appreciate their efforts to work alongside Churchill to produce much needed workforce housing in the community of Flagler Beach, Florida. .

For more information about CSG’s multifamily financing programs and services, please contact Dan Duda, SVP and National Director of Origins & Acquisitions, at (727) 269-5198 or by email at [email protected]

About Churchill Stateside Group

Churchill Stateside Group and its wholly owned subsidiaries (CSG) serve the affordable housing and commercial renewable energy sectors. CSG sponsors tax credit capital investment funds for institutional investors and offers a variety of construction, permanent and bond financing solutions. With over $3 billion in assets under management, CSG has longstanding and successful investment relationships with many corporate investors and pension funds. The firm’s investor and developer clients benefit from our experienced people, prominent and proactive leadership, and attractive debt and equity platforms. The company, through its subsidiary Churchill Mortgage Investment LLC, is a USDA Rural Development and HUD/FHA MAP and LEAN and Ginnie Mae Issuer Approved Lender.

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