BOSTON — MassDevelopment has issued $53.6 million in tax-exempt bond financing to Washington Pine LLC for the construction of a five-story, 202-unit complex in Boston. Located at 3368 Washington St., the building will house 140 units of supportive housing for individuals transitioning out of homelessness, and the remaining 62 units will be affordable apartments. All residential units will be managed by The Community Builders Inc., while long-term support for all formerly homeless residents will be provided by homeless services provider Pine Street Inn. The project will feature 24/7 front desk security, spaces for resident gatherings, fitness rooms, laundry rooms, a parking garage, two plazas and bike repair and storage. Construction is slated for completion by late 2023. Barings LLC was the corporate bond purchaser.
TEMPE, ARIZ. — Holualoa Cos. has released plans for Dwell: A Work @ Home Community at the intersection of Fifth Street and Farmer Avenue in Tempe. The 129-unit workforce community will complete Farmer Studios, a mixed-use development, and provide housing opportunities for residents in downtown Tempe, Arizona State University and other locations. Holualoa purchased the two-acre parcel for $12 million. The residences will be integrated into two existing office buildings and a pocket park onsite to create a mixed-use development. The community will feature live/work-oriented amenity rooms for residents, conference rooms with green screens, private meeting rooms, a fitness center, dog-friendly features and walkable access to light rail, streetcar, restaurants and other amenities. Architekton and Worksbureau are serving as architects for the project.
CHICAGO — Walsh Construction has completed Broadview Senior Apartments, an affordable community for residents age 55 and older in Chicago. CIBC Bank USA provided a $5.3 million construction loan and made a $6.9 million equity investment in the project, which rises three stories. Of the 70 units, 11 are reserved for special-needs tenants. CIBC Bank USA is working with the Housing Opportunities Development Corp. (HODC), which serves as Broadview Senior Apartments’ nonprofit partner. HODC provides services to the residents of the facility, coordinates onsite activities and workshops and provides onsite staff for a minimum of 20 hours per week.
ST. CHARLES, ILL. — Associated Bank has provided a $20 million loan for the acquisition of Carroll Tower Apartments in St. Charles, about 40 miles west of Chicago. The affordable housing community is located at 200 N. Second St. along the Fox River. The six-story property is home to 108 one-bedroom units that are fully occupied. Units are restricted to low-income residents who are 62 years of age or older. Teresa Rubio of Associated Community Development LLC managed the loan and closing. The borrower, 3 Diamond Development LLC, plans to preserve the property’s affordability status.
AUSTELL, GA. — Rancho Santa Margarita, Calif.-based Kairos Investment Management Co. has acquired Walton Crossing, a 238-unit affordable housing community in Austell, about 17.8 miles from downtown Atlanta. The undisclosed seller, an affordable housing developer and investor, sold the property for $34.6 million. Built in 1990 on 20.1 acres, Walton Crossing offers one-, two- and three-bedroom floorplans. Unit features include fireplaces, extra storage space, balconies and patios, walk-in closets and energy-efficient kitchen appliances. Community amenities include a pool, private fitness center, playground, tennis and sport court, gazebo, classrooms and community space. The property also includes an adventure center with a kitchen, which offers a complimentary after-school enrichment programs for the residents’ children. Most of the units are reserved for households earning 60 percent or less of the area median income (AMI). Kairos plans to install washers and dryers in the units and deploy Environmental, Social and Governance (ESG) programs to help conserve water at the property. Located at 1820 Mulkey Road, the multifamily community is situated 8.1 miles from Kennesaw State University and 24.8 miles from Hartsfield-Jackson Atlanta International Airport.
In 2021, supply chain issues, increased costs, wage inflation and the logistical challenges of completing projects compounded to negatively impact the affordable housing pipeline. According to Gregg Gerken, head of U.S. Commercial Real Estate with TD Bank, 2022 looks fantastic for the affordable housing sector as those issues are beginning to resolve. However, he notes that the affordable housing sector is still challenged by delays related to financing challenges, among other factors. Demand for affordable housing, federal level commitments to the sector and the continued involvement of Fannie Mae and Freddie Mac are all positive factors for the outlook of affordable housing. However, Gerken notes, “Financing is somewhat challenged by gaps in funding. With pricing and costs going up, there’s a gap between how much a project might support from a loan side versus how much in tax credits are allocated to that project during the last round of allocations. Some of that gap between overall costs and the funding sources is being made up as local agencies put in additional money in order to get affordable housing done.” Hear what Gerken has to say about the development of workforce and affordable housing and the involvement of government-sponsored …
ABINGTON, MASS. — MassHousing has funded a $34.8 million loan for the refinancing of Woodlands at Abington Station, a 192-unit affordable housing property located about 20 miles south of Boston in Abington. The property consists of eight buildings that house 78 one-bedroom apartments and 114 two-bedroom apartments. Amenities include a pool, fitness center, community room, tennis courts and a playground. The borrower, Beacon Communities LLC, will use a portion of the proceeds to fund capital improvements and preserve the property’s affordability status.
LOS ANGELES —Grandbridge Real Estate Capital has provided a $30.4 million first mortgage loan secured by Sunset at Normandie Towers, a 148-unit Section 8 senior living facility in Los Angeles. Artin Anvar originated the refinancing transaction through HUD’s 223(f) loan insurance program. The loan features a 35-year term and 35-year amortization. “The owners of Sunset Normandie were able to lock a very low fixed rate for 35 years allowing for the preservation of the much-needed affordable housing in Los Angeles,” says Anvar. “As a repeat HUD borrower they were able to capitalize on the low rate environment while also taking equity out of the property.”
By Robert Walton, Trimont Real Estate Advisors U.S. lawmakers may be on the cusp of adopting the most far-reaching affordable housing legislation the nation has seen in decades. Despite ongoing discussion of a House-approved spending plan’s overall price tag, congressional leaders hope to forge agreement on FY 2022 appropriations as early as Feb. 18, the end date of a continuing resolution funding the government. Expanded tax credits under a budget agreement could pave the way to creating thousands of additional rental units for households with low and median incomes, helping to address a housing supply gap that has dashed hopes and opportunities for a large and growing segment of the population. Affordable housing initiatives expected in the 2022 federal budget range from an expansion of low-income housing tax credit (LIHTC) allocations to states, to the creation of several new tax credits to incentivize development and rehabilitation of affordable housing in a wider range of product types and income levels. Those could include a middle-income housing tax credit to promote affordable rentals for families with incomes closer to their local median but who struggle to afford median rents. A neighborhood homes tax credit would target development and rehabilitation of affordable single-family …
WASHINGTON, D.C. — Merchants Capital has secured $115 million in total financing for Parkside 8 and Parkside 10, two workforce housing developments located in Washington, D.C. The borrowers, City Interests Development Partners and Ravinia Capital Group, are co-developing the overall project. Bridge Investment Group is managing the Opportunity Zone strategy on behalf of the developers. The construction timeline was not disclosed. Merchants Capital secured $56 million in construction financing through Merchants Bank of Indiana, as well as $59 million in permanent financing through Freddie Mac Non-Low-Income Housing Tax Credit (LIHTC) forward commitments and Freddie Mac permanent loans. Upon completion, Parkside 8 and 10 will feature 230 residential units and approximately 14,000 square feet of retail space. Within the new properties, select units will be reserved for residents earning between 80 percent and 120 percent of area median income (AMI). The multifamily buildings are part of Parkside, a 3.1 million-square-foot master-planned development that will include between 1,500 and 2,000 residential units, up to 50,000 square feet of retail space and 860,000 square feet of office space. Parkside will also feature a one-acre park and a new pedestrian bridge that crosses over Kenilworth Avenue and Interstate 295. Additionally, Parkside offers four neighborhood …