Powder Springs apartment complex seeks extra $1.5M in financing

Chart Riggall, Marietta Daily Journal, Ga.
·2 min read

Jan. 19—CUMBERLAND — The Development Authority of Cobb County took the first step this week toward approving an additional $1.5 million in bonds for a senior living apartment complex in south Cobb.

The Prestwick Development and Marietta Housing Authority-backed venture previously received $13.5 million for the project, but representatives said rising construction costs required them to ask for more financing.

The vote to approve an inducement resolution — which moves the authority closer to issuing new bonds — carried 6-0, with board member Karen Hallacy absent.

The project, dubbed "Meredith Park," sits near the intersection of Powder Springs Road and Anderson Farm Road, just southwest of the East-West Connector. First proposed in 2019, the complex of nearly 150 apartments targeted to renters ages 55 and up is expected to be completed in February.

"We are making great progress with construction, and are going to need to borrow a little bit more money ... to complete the construction of the project and satisfy some of the legal requirements associated with the debt," said David Williams, an attorney with law firm Butler Snow representing the developers.

The requirement Williams alluded to is related to tax credits the project expects to receive from the Georgia Department of Community Affairs, explained Dan McRae, counsel for the authority. To get those credits, at least 50% of the project's financing must come from bonds. And as the construction costs have gone up, the original $13.5 million bond issue has shrunk as a portion of the overall financing.

Josh Marx of Prestwick said that the cost overruns are due to rising material costs over the last several years, not any changes to the design of the project.

He added that the project is targeted to residents earning between 40% and 80% of the area median income ($25,000 to $65,000 per family), with a guarantee rent won't take up more than 30% of a resident's income.

"There is a great need in our community. We do not have a lot of housing for seniors," said board member Donna Rowe. "There is a need, and especially in this particular zone out there on the Powder Springs corridor ... We have an aging population that we have to be prepared to take care of."