Per USDA’s online data, The Preserve at Flagler closing shatters the previous record of an almost $31 Million closing which is also financed by Churchill Stateside Group.
CLEARWATER, FL, July 12, 2022 — 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 in Flagler Beach, Florida. Preserve at Flagler will consist of 240 units catering to family tenancy. The capital stack consists of a USDA Rural Development 538 Option 3 Construction Advance Loan and Private Equity. CSG is providing the USDA Rural Development 538 Loan totaling $42,600,000. According to USDA’s online data, this is the largest 538 loan in the program’s history and shatters the previous record of almost $31 million which is a project also financed by CSG and developed by the same development team.
Dan Duda, Senior Vice President and National Director of Originations and Acquisitions for CSG, said, “We are proud to be a financing partner on Preserve at Flagler as it will significantly help fill the need for workforce housing in the community of Flagler Beach, Florida. We very much appreciate our partnership with the development team consisting of Piedmont Private Equity, Portage Real Estate, and American South Real Estate Fund on this transaction. In addition, we appreciate our partnership with USDA Rural Development as this is through USDA’s 538 Loan Guarantee Program. USDA recently reduced its ongoing and annual guarantee fee which helped make the financing more affordable for the sponsor.”
Lead project developers, Eric Conkright with Piedmont Private Equity and John Cattano with Portage Real Estate, said, “Our development team has noticed an underserved tenant base between high-rent class A and low-income tax subsidized apartment projects. Threading this needle is quite challenging without willing construction and permanent debt partners like Churchill and USDA-RD. We’ve found a great niche by turning our focus towards high quality projects aimed at the workforce in high-growth, emerging markets in the Southeastern US, such as the Flagler County submarket in Florida, as developers have focused more on the Jacksonville and the Del-tona (Deland/Daytona Beach) MSAs, bypassing Flagler County leaving a gap in housing supply. A Class-A housing project like the 240-unit Preserve at Flagler Beach apartment community, drew praise and support by both the City Council and the local community, in an area where less than 1% of the housing supply is for-rent housing, and will provide housing for hospitality and retail workers closer to local employers. Projects such as ours will not only attract the workforce, but empty-nesters and other residents looking to relocate to the ‘funky-little-beach-town’ as locals call the City of Flagler Beach, where the project will be approximately one mile from the ocean and include a weekend shuttle service for residents.”
Keith Gloeckl, Chief Executive Officer of CSG, added, “Due to increasing demand and the growing competitiveness of the Tax Credit market, we firmly believe that Workforce Housing projects like this will play a major role in affordable housing for the foreseeable future. We are pleased to partner with USDA-RD on this transaction and appreciate their efforts to work alongside Churchill to produce much needed work force housing in the Flagler Beach, Florida community.”
For more information about CSG’s multifamily finance programs and services, please contact your local CSG origination partner.
About Churchill Stateside Group
Churchill Stateside Group (CSG) and its wholly owned affiliates serve the affordable housing and commercial renewable energy industries. CSG sponsors tax credit equity investment funds for institutional investors and provides a variety of construction, permanent, and bond financing solutions. With over $3 Billion of assets under management, CSG has long-standing and successful investment relationships with numerous corporate investors and pension funds. The company’s investor and developer clients benefit from our experienced staff, prominent and proactive senior leadership, and attractive debt and equity platforms. The company, through its subsidiary Churchill Mortgage Investment LLC, is an approved USDA Rural Development and HUD/FHA MAP and LEAN lender and Ginnie Mae Issuer.
Churchill Stateside Securities, LLC (CSS) is an independent broker-dealer, registered with the U.S. Securities and Exchange Commission (SEC), a member of the Financial Industry Regulatory Authority, Inc. (FINRA), the Securities Investor Protection Corporation (SIPC), and MSRB registered.
For more information, please visit www.CSGfirst.com.
Read the press release here.