RICHMOND, Va. — Two local development groups have secured financing to continue plans for a pair of large apartment complexes around Manchester.
Developer Tom Wilkinson said last week his Maramjen Investments closed on $32 million in financing for its conversion of the former American Tobacco building at 800 Jefferson Davis Highway, where 134 apartments and dozens of artist lofts are planned.
Wilkinson said the total cost for the first phase of redevelopment is $32 million.
A portion of the funding will come from $13.85 million in tax-exempt bonds issued through Richmond Redevelopment and Housing Authority for the project, Wilkinson said. BB&T Capital Markets orchestrated that side of the funding.
The project will qualify for $17 million in low-income and historic tax credits to be paid out in installments and used as equity. In the meantime, Cedar Rapids Bank & Trust provided a $9 million bridge loan that gets repaid as equity payments are received, Wilkinson said.
Since January, general contracting crews with Richmond-based KBS Inc. have completed asbestos removal on the 150,000-square-foot building.
With much of the interior mitigated, Wilkinson said phase-one construction work is about to begin on 66 one-bedroom units, which he hopes to complete by December. The remaining 67 two-bedroom units and a three-bedroom unit are planned to be ready for residents by June 2018.
Continue reading on RichmondBizSense.com for info on the Porter Street project.