A new 80-unit, four-story building offering only affordable apartments will soon rise on a city block at the corner of Coyle and Napoleon streets in East Downtown, across the street from the new High School for Law and Justice and walking distance to the MetroRail Purple Line.
EaDo Lofts, a $18.4 million construction project, will be the seventh affordable housing project in Houston for Virginia- and Texas-based developer Mark-Dana Corp. The company closed on the 1.34-acre site it bought for a little under $3 million June 12, and David Koogler, president of the company, estimates the project will take about 14 months to complete.
“There’s a huge demand for affordable housing in that immediate area,” Koogler said.
EaDo Lofts qualified for a low-income-housing tax credit from the Texas Department of Housing and Community Affairs and will receive $1.5 million a year in tax credits for 10 years.
EaDo Lofts LP, the ownership entity of Koogler’s company, and tax credit investor U.S. Bancorp Community Development Corp., was represented by Houston-based Ingram Commercial Real Estate. Fred Ghabriel, a partner at Houston-based Bejjani & Associates Inc., represented the seller, a partnership between Hamilton Midtown LP, Yale Street Partners LP and Webster-Chenevert Ltd.
Apartments will range from one- to three-bedroom units with rents ranging from $421 to $1,168, based on the unit type and income band of residents compared to the area median income. To qualify for an apartment, residents can’t make more than 60 percent of the area median income. For example, a family of four would need to earn $44,940 or less and a family of two couldn’t make more than $36,000 to qualify.
Common amenities will include a pool, fitness center, club room and business center with computers.
Houston-based Mucasey & Associates is designing the project, while Koogler Construction of Texas LLC will be the contractor. The project’s construction loan is through Amegy Bank.
Koogler joined his father’s family business 12 years ago after finishing law school in Texas. His father, originally a coal miner, began developing affordable housing as a way to give back to the community in Virginia, Koogler said. They developed their first project in Texas in LaMarque in 2008.
Koogler plans to appy for tax credits for two more projects, one in Seabrook and another on the Near Northside.
Meanwhile, Houston-based nonprofit New Hope Housing Inc. recently opened a new 175-unit affordable housing project in the city’s East End, just a few blocks from the future site of the new Baker Ripley headquarters off Harrisburg Boulevard. The fully furnished apartments are more dorm-like, designed for one person with a kitchenette that includes a microwave, sink and fridge. Oven ranges are in the building’s common room.