Gypsy Hill Place

The historic Robert E. Lee High School was constructed in 1926 as the City of Staunton’s first separate school for secondary education. As a result of its singular position in the community and with its commanding hill-top presence across from Staunton’s still-popular Gypsy Hill Park, the building has been a fixture in the community for nearly a century.

In 1954, two wings were added to the school, and the original building’s auditorium was renovated to accommodate a population of 800 students through the new addition. Though the school remained in excellent condition, city leaders felt a more modern facility was needed. After the Class of 1983 graduated in June of that year, a new Lee High School on North Coalter Street opened its doors to replace the historic building.

In the late 1980s, the Goicolea family of Spain bought the building, and for nearly a decade the school housed a summer school for school-aged Spanish nationals to learn English. The Dioceses of Richmond then purchased the building in 2001, and they formed and operated a religious school in the building until the end of the school year in 2007.

OCP acquired the Robert E. Lee High School from the Dioceses of Richmond in June 2009, and began its conversion to an independent adult living facility soon thereafter. The renovation is one of the first in the Commonwealth of Virginia to combine New Market and historic tax credits, which has allowed Octagon to rent space at rates well below market value to the Staunton Senior Center, Staunton Meals on Wheels, and Shenan Arts, a local community theater non-profit.

Project Timeline:
• Closed on building in June 2009
• New Market Tax Credit financing (including senior lender) closed in May 2009
• Demolition began August 2009
• Construction began October 2009
• Certificate of Occupancy in August 2010

Non-Traditional Financing Solutions:
• $8.20mm leveraged loan from United Bank (New Market Tax Credit lender) with .625mm mezzanine debt
• $3.18mm New Market Tax Credit equity from Hampton Roads Ventures and Capmark
• $7.47mm historic tax credit equity ($2.84mm State HTC and $3.62mm Federal HTC)
• $3.18mm developer equity