Estrella Landing - County WHSP Proposal 2022-07-29TERROIR DEVELOPMENT, LLC
P.O. BOX 15025 ♦ WILMINGTON, NORTH CAROLINA 28408 ♦ OFFICE 910.791.3354 New Hanover County
RFP - Workforce Housing Services Program
PROPOSAL
July 29, 2022
Applicant Name: Estrella Landing Apartments, LLC
Type of Applicant: For-Profit, Limited Liability Company
Applicant Established Date: 9/9/2021
Organization Principal (Managing Member):
Terroir Development, LLC
Stephanie L. Norris, Manager
PO Box 15025
Wilmington, North Carolina 28408
Office: (910)791-3354
Mobile: (919)669-1079
Email: stephanie@norcomanagement.com
Terroir is a 100% Woman-Owned Business.
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Project Summary:
Name: Estrella Landing Apartments
Property Location: 4615 Gordon Road, Wilmington, NC 28411
Total Development Costs: $18,233,226 (REF. Exhibit A – Development Budget with 20-YR)
WHSP Funding Request: $ 1,500,000 20-Year Term / 20-Year Amortization / 2% Interest
Debt Service paid annually from available, net cash
flow after the Financial Audit is approved by the
Equity Investor.
Funding Sources: (REF. Exhibits A.1 to A.4)
Funding Source Type of Funding Amount Rate Term
Merchants Capital Corp. Permanent Loan 4,508,710 6.25% 15/40 years
NCHFA CDBG-DR Loan 2,500,000 0 20/20 years
Merchants Capital Investments Tax Credit Equity ($0.87) 8,189,283 N/A 15 years
New Hanover County WHSP Loan 1,500,000 2% 20/20 years
NCHFA WHLP-CV (Requested) 1,535,233 0 20/20 years
Total Funding Sources: $18,233,226
Note: Exhibit A.2 – Merchants Capital Investments is a Letter of Intent for the purchase of the Tax Credits with a
Tax Credit Price of $0.90. If the Tax Credit Equity closes at this price, the WHSP Loan amount could potentially be
reduced. Similarly, if the WHLP-CV request increases, the WHSP Loan amount could potentially be reduced.
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Project Type: New Construction of an 84-unit community to serve Low and Very Low Income
Families and Seniors in New Hanover County.
Project Narrative:
Estrella Landing Apartments is located in a high-growth area on the north side of New
Hanover County, where new residential communities have been recently completed and others
are under construction. The site is near the I-40/Gordon Road interchange, which offers great
access to all parts of the Cape Fear Region and beyond. The development will consist of 84-
units within three (3), 3-Story buildings: 13 - 1 Bedroom Units, 35 - 2 Bedroom Units and 36 - 3
Bedroom Units. The Clubhouse will include the Site Manager's Office and Resident Community
Space. Interior features of each apartment will include: Energy Star appliances, Washer/Dryer
hookups, Ceiling Fans in the living and bedrooms, Exterior Storage Areas, among other features.
We intend to use a wood plank Luxury Vinyl Tile (LVT) to enhance and update the interiors of
the apartments. Brick and Fiber-Cement Siding will be used to achieve long-term use and
durability while keeping maintenance costs manageable. The architectural design and details
rival any high-end, market rate apartment community.
Rent Structure with Target Income Limits: (REF. Exhibit A – Development Budget)
Unit Type Number of Units Rent Area Median Income
1 BR/1 Bath 3 335 30%
1 BR/1 Bath 10 745 60%
2 BR/2 Bath 9 410 30%
2 BR/2 Bath 26 900 60%
3 BR/2 Bath 9 480 30%
3 BR/2 Bath 27 1000 60%
Note: The Target Income Limits were set by NCHFA with the 2021 QAP, which required the use of the 2020 HUD
Rent and Income Limits. The Rents referenced above are taken from the Rent Structure in the NCHFA
Final/Approved Application and may be increased prior to the Lease-Up phase. Regardless, the Rents will comply
with HUD requirements in effect during the LIHTC Compliance Period and extended period of affordability.
HUD Housing Choice Vouchers, administered by the Wilmington Housing Authority, will
be accepted at Estrella Landing. In our existing New Hanover County LIHTC communities
(Lockwood Village Apartments and Bennett Village Apartments), approximately 12% to 20% of
the Residents have a HUD Voucher.
Estrella Landing has been designed to provide handicap accessibility to all buildings and
amenities within the site. A total of 10 units will be accessible for mobility and audio/visually
impaired residents. The remaining ground floor units will be adaptable.
The property will remain affordable for 15 years through the LIHTC, IRS Section 42,
Compliance Period, which starts the day the property is placed in service. There will be an
additional 15 years of affordability beyond the initial Compliance Period for a total of 30 years.
The WHSP funds will assist with increasing the affordable housing stock, while maintaining
affordable rents for the residents in New Hanover County.
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Project Schedule: (REF. Exhibit A.2 – Merchants Capital Letter of Intent)
(REF. Exhibit C Items)
Based on the current status of the plan reviews with various agencies and permits
received to date, we expect to accomplish the tasks below on or by the dates referenced.
August 2022 Purchase of the Estrella Landing Site
December 2022 Tax Credit Equity and Construction Loan Closing
March 2023 Construction Commencement
December 2024 Construction Completion and WHSP Loan Disbursement
January – April 2025 Lease Up
Generally when Construction is complete, our Accountants (Bernard Robinson) will
complete a draft Final Cost Certification to account for every Source and Use. The General
Contractor will submit Lien Waivers for their work, including all subcontractors and vendors.
The Equity Investor reviews this data to approve the release of the Construction Completion
Equity Installment. The same data can be provided to the County for the WHSP Loan
Disbursement, which will be used to pay down the Construction Loan balance.
Development & Management Team: (REF. Exhibit B Items)
Terroir Development, LLC, is the Managing Member of Estrella Landing Apartments, LLC.
Although the Equity Investor will own 99.99% of the interest in Estrella Landing, Terroir will be
100% responsible for tax credit compliance and reporting to the Investor. The Members of
Terroir are Stephanie L. Norris (Manager) and Joan O. Norris, both of which will be required to
execute personal guarantees for the delivery of the tax credits (Construction Completion
Guaranty) and a Tax Credit Compliance Guaranty for the 15-Year Compliance Period.
Norco Management Holding, Inc., will be the Property Management Firm of Estrella
Landing. The Owners of Norco are Joan O. Norris (President/CEO) and Stephanie L. Norris.
Norco provides property management services to the 26 affordable housing communities
owned by Joan and Stephanie through various development entities. Terroir and Norco are
Wilmington-based businesses, and the Members/Owners are New Hanover County residents,
who have a vested interest in improving our Community.
Development Quality: (REF. Exhibit D Items)
We encourage the County Commissioners and Staff to tour Bennett Village and
Lockwood Village located in New Hanover County. Both properties were developed and are
owned and managed by the above referenced team. The architectural style and building
materials used for Bennett Village will be replicated at Estrella Landing. Exterior building
materials include 30-year anti-fungal architectural shingles, brick, fiber-cement siding and band
boards for cost-effective maintenance. Interior Unit features include luxury vinyl planks,
stainless steel appliances, and unit floorplans that are comparable to market rate apartments.
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Exhibits:
Exhibit A: Development Budget with 20-Year Proforma (Financial Feasibility)
Exhibit A.1 NCHFA LIHTC Allocation and Final/Approved Application
Exhibit A.1.1 NCHFA 2021 LIHTC Exchange Letter dated 5/16/2022
Exhibit A.1.2 Estrella Landing Project Update to NCHFA dated 5/26/2022
Note: The Project Update reflects Construction Costs as of May 2022 and includes a request for WHLP-CV Relief
Funds from NCHFA, prior to the announcement of the County RFP. This information is reflected in the Exhibit A –
Development Budget and the Funding Sources referenced above.
Exhibit A.2 Merchants Capital Tax Credit Equity Letter of Interest
Exhibit A.3 NCHFA CDBG Loan Conditional Commitment
Exhibit A.4 Merchants Capital Permanent Loan Preliminary Commitment
Exhibit B: Terroir Development, LLC, Mission Statement and Member Experience
Exhibit B.1 Member Resumes
Exhibit B.2 Norco Management Holding, Inc., Real Estate Schedule
Exhibit C: County TRC Approval Letter and signed Plans dated 6/30/2022
Exhibit C.1-C.3 County Land Disturbance, Tree Removal and Floodplain Permits
Exhibit C.4 NCORR Notice to Proceed and HUD Environmental Clearance
Exhibit C.5 US Army Corp of Engineers Nationwide Permit
Exhibit C.6 NCDEQ Water Quality Certification
Exhibit C.7 NCDEQ Sanitary Sewer Permit (Private)
Note: NCHFA commissioned a Market Study in March 2021, after the Preliminary LIHTC Application was submitted.
During the HUD Environmental Assessment, a Phase I ESA was completed in October 2021. A Subsurface
Investigation was completed in March 2022. All of these reports can be available for review, if needed.
Exhibit D: Architectural Plans prepared by Martin Riley Associates-Architects, PA, currently in
County Building Permit review
Exhibit D.1 Photo Sheet of Bennett Village Apartments