Tanglewood Apartments

Acquisition/Rehabs, Memphis, Tennessee

Tanglewood Apartments is a 199-unit property originally built in the 1970s as a conventional multifamily complex. The premise underlying Renaissance Property Group’s acquisition and rehabilitation of the property in 2005-2006 was that its physical needs could best be addressed with LIHTC equity, because it had already become de facto affordable housing, as evidenced by the incomes of most residents.

The financing closed in October 2005, and while the rehab addressed many acute needs of the property, several surprises lay in wait. Not only did the 2008 financial crisis lead to job loss for many Tanglewood residents, it also sent the project lender into a panicked rush to raise liquidity. Mr. Miller’s legal background was valuable in eventually persuading the lender not to attempt to call in the loan, averting disaster, and Raymond James funded the equity necessary to convert the financing to permanent status in 2010.