Rural renters in North Carolina are in line for a major rehab effort, with Greystone committing $80.9 million to overhaul a 640-unit portfolio of affordable apartments spread across 10 small-town properties. The deal leans on a familiar but tricky recipe in rural housing finance: pair USDA-backed construction-to-permanent debt with Low-Income Housing Tax Credit equity to fix up aging buildings while keeping rents in reach.
As reported by ConnectCRE, the recapitalization taps two Greystone arms. Greystone Servicing Company is providing about $52.5 million in USDA Section 538 financing, while Greystone Real Estate Capital is supplying roughly $28.3 million in LIHTC equity. Harmony Housing Affordable Development Inc. is leading the redevelopment effort, with Landura Investment Company signed on as co-developer.
Deal details
Greystone’s own announcement puts the total package at $80,934,222. That includes $52,552,000 of USDA Section 538 construction-to-permanent financing and $28,382,222 in LIHTC equity syndicated by Greg Voyentzie. The capital stack is further padded by the assumption and re-amortization of legacy USDA Section 515 loans, Capital Magnet Fund soft loans from the Foundation for Affordable Rental Housing Holdings, surplus reserve reinvestments, deferred developer fees and proceeds from tax-exempt bond investments, according to Greystone. It is the kind of layered structure that has become standard for multi-property preservation deals, where public and private dollars have to be carefully stitched together to make the numbers work.
Why USDA programs matter
USDA’s Section 538 and Section 515 programs are central to keeping multifamily housing alive in smaller communities that often get overlooked by conventional capital. The National Council of State Housing Agencies notes that Section 538 guarantees loans made by private lenders, while Section 515 has historically provided direct federal loans for rural rental housing. Used together, they make it easier to pair tax credit equity with public soft financing so that substantial rehabs can move forward without blowing up affordability.
North Carolina context
The Greystone deal lands amid a broader push to shore up lower-cost housing across North Carolina. In November, the state’s Local Government Commission approved more than $370 million for housing and infrastructure projects, signaling that public officials are willing to sign off on large recapitalizations. Rural counties often carry a heavy share of older USDA-era properties that now need fresh investment to meet current building and accessibility standards.
What’s next
Greystone is explicitly framing the transaction as a preservation move rather than a repositioning play. “This transaction reflects Greystone’s commitment to preserving affordable housing across the country, particularly in rural communities where reinvestment is most needed,” Greg Voyentzie said in the company announcement. The firms did not publish a construction timetable in their initial release, but said the capital will be used to stabilize operations and fund renovations across the 10-property pool, according to the Greystone release.
Developers described the recapitalization as a preservation play aimed at keeping rents affordable while financing long-needed upgrades, per ConnectCRE. Local housing officials and residents were not quoted in the first round of announcements, and the parties say they plan to provide more detail on construction timing and scope once the rehab program formally gets underway.
