R4 CAPITAL PROVIDES OVER $12 MILLION FINANCING TO AWARD-WINNING HISTORIC REHABILITATION IN TOPEKA, KANSAS
R4 Capital arranges equity and debt to renovate and expand a former hospital to LIHTC apartment units
R4 Capital, a national affordable housing investment firm and asset manager, and R4 Capital Funding, R4’s tax-exempt debt platform, are proud to have arranged more than $12 million in equity and debt financing to rehabilitate and expand the award-winning Madison Street Apartments in Topeka, Kansas.
Madison Street Apartments was awarded the Kansas Preservation Alliance 2018 Merit Award for Excellence on May 18, 2018. Located in Topeka’s downtown center, the project is a U.S. registered historic landmark property composed of multiple building additions. Built in 1896 and rebuilt in the 1930s, it housed the Santa Fe Hospital which provided quality medical care to all railroad employees and is considered a forerunner of employee health benefits in the nation. With the goal of retaining historic integrity while adjusting for occupants’ modern amenities, the property was converted to 119 residential units of affordable housing for seniors and people with disabilities earning up to 60% AMI.
The developer, Pioneer Group Inc., traditionally focuses on the acquisition and rehabilitation of historic properties located within the state of Kansas. Madison Street Apartments is R4’s first project with Pioneer Group. The second project, Ridge Top II Apartments, is nearing 50% completion rehabilitating six 130-year old historic buildings on the Veterans Administration campus which originally was the National Home for Disabled Volunteer Soldiers in Leavenworth, Kansas for which R4 provided $7.7 million of tax credit equity.
“Adaptive reuse of local architecture is a smart, economical approach to sustainable housing that preserves history and revitalizes our community,” observes Pioneer Group’s President, Ross R. Freeman. “We continue to partner with R4 Capital in our shared commitment to ensure decent, affordable housing for those in need.”
The rehabilitation of the historic property was financed with 4% Low-Income Housing Tax Credits and Historic Tax Credits provided by R4 Capital, the construction and permanent bond financing was provided by R4 Capital Funding, and proceeds from the sale of Kansas State Historic Tax Credits.
Since 2012, R4 Capital has closed six transactions in Kansas.