"Urban chic meets suburbia." That's how Colony Village's website describes their new apartment complex. Colony Village, a Section 221(d)(4) HUD-insured property, is located on a major thoroughfare near a state highway in the Greater Richmond, Virginia suburb, Chesterfield County. In addition to the usual luxury amenities of designer kitchens, granite countertops, stainless steel appliances, slate entry way, and tile bathrooms, there are accoutrements most developers are restricting to urban centers such as a Yoga Studio, a Rejuvenation Room with tea bar, a mezzanine overlooking the community pool, a fire pit and valet door-to-door trash service.
The availability of HUD-insured mortgages for apartment complexes has been a significant factor in the production of additional units throughout the Richmond region and other parts of Virginia. Regardless of the economic environment, the removal of risk to the HUD-approved lender ensures the availability of capital to fund the construction and long-term permanent financing needed. Additionally, developers have an incentive to create developments since these loans provide maximum leverage, are long-term with a low, fixed interest rate and are non-recourse (no personal liability for the developer).
Either individually or together, the Colony Village developers, George Emerson and Phil Roper, have used HUD-insured loans to finance eight other Virginia apartment properties totaling almost 1,300 units. These apartment developments include: Chesterfield Gardens in Chester, Chester Village Green in Chester, American Tobacco Center in Richmond, White Oaks in Chester, Cedar Broad Apartments in Richmond, Festival Park in Chesterfield, Shafer Grace Apartments in Richmond which is under construction and Daleville Town Center in Daleville which is also under construction.
The Colony Village development is financed with an $18.4 million HUD-insured loan and uses a neo-traditional design that is a mixture of residential and retail. There are 166 units -- one, two and three-bedroom units. Retail or work spaces are planned for the first floors of some of the buildings.
The units range in size from 615 - 1,132 square feet. With rents ranging from $800 to $1,400, the average renter would have an annual gross income ranging from $28,800 to $50,400. The HUD-insured loan does not limit rents or dictate income eligibility.
Being located in a designated revitalization zone, the Jefferson Davis Corridor Enterprise Zone, the development is eligible for state and county incentives and has an application pending with the state housing agency, the Department of Housing and Community Development. The package of state and county incentives offered are for the purpose of encouraging business expansion and recruitment.
Colony Village is an example of how HUD-insured properties are meeting the needs of the market.