Expect 150 units with a lower rent than average.
There must be a memo hidden in the vaults of downtown that states, “you can build apartments and only apartments in Manchester, the building of retail, restaurants, parks, anything but apartments is strictly forbidden”. Forgive the sarcasm, I realize that as long as developers can make money building apartments, we can expect more apartments. Hopefully the saying, retail follows rooftops, will eventually kick in.
Recently the parking lot at 151 W. Commerce Road has been torn up in preparation for the Hatcher Tobacco Flats apartments.
According to Richmond BizSense.com the 150 apartments will be less expensive than many of the recent Manchester expansions with rent on the 1-3 bedroom apartments topping out at $900.
The project will cost about $18 million to develop, including land acquisition. To offset some of the cost, Genesis has earned a tax credit for agreeing to keep rent at the building at below market rates for tenants of certain income levels.
The company has secured a low-income housing tax credit through a federal program administered by the
U.S. Department of Housing and Urban Development. Genesis is participating in a version of the program designed to allow developers to recoup up to 70 percent of qualified development costs.
Solarz said that 150 of the project’s 152 apartments will cater to renters at about 50 percent of Richmond’s media income. That level sits just shy of $40,000 per year, according to the U.S. Census Bureau.
Genesis can get estimated credits of about $1 million a year or $10.6 over a 10-year period through the program. That figure would offset about 60 percent of the company’s $18 million investment.