HOUSTON — A partnership between the Harris County Housing Authority, OCI Development, Harris County Housing & Community Development and Atlantic Pacific Cos. has broken ground on a 192-unit affordable housing project in Houston. The Residences at Arbor Oaks is located on the city’s northwest side and consists of 84 two-bedroom and 108 three-bedroom units that are reserved for households earning between 30 and 60 percent of the area median income. Amenities include a pool, fitness center, business center, outdoor grilling and dining stations and a children’s play area. Residents will also have access to a community center facility. Wells Fargo and Citibank contributed to the financing of the project, which also received a $12 million Community Development Block Grant as part of a program that provides funding for damages caused by Hurricane Harvey in 2017.
WASHINGTON, D.C. — Multifamily lending declined 49 percent year-over-year in 2023, according to a report by the Mortgage Bankers Association (MBA). Lenders provided a total $246.2 billion for apartment buildings with five or more units last year, with 51 percent of active lenders making five or fewer multifamily loans throughout the year. The Washington, D.C.-based organization previously estimated that multifamily originations totaled $264 billion. By volume, the top five multifamily lenders in 2023 included Berkadia, Walker & Dunlop, JP Morgan Chase & Co., CBRE and Greystone. Nearly half (42 percent) of the dollar volume went to the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. “The analysis shows that even with the drop in activity, the multifamily lending market remains broad and deep, with more than 2,500 different lenders making more than 36,000 mortgage loans backed by multifamily properties,” says Jamie Woodwell, MBA’s head of commercial real estate research. The MBA report is based on its surveys of the larger multifamily lenders and the recently released Home Mortgage Disclosure Act (HMDA) data that covers multifamily loans made by many smaller lenders, particularly commercial banks.
By Derrick Barker, founder and CEO, Nectar Many founders and CEOs in commercial real estate have seen their fair share of market cycles. Analyzing today’s affordable housing crisis within the current multifamily rental market lends itself to sharing personal insights and most importantly, discussing how we can address these challenges head-on. A Cautionary Tale from 2013 Consider this personal story as anecdotal evidence. In 2013, this writer, a private investor at the time, acquired an apartment complex in Austell, Georgia, a suburb of Atlanta. It was a prime investment: cash-flowing and competitively priced due to it being a buyer’s market. For a while, we were the crown jewel of the submarket, which gave us a competitive advantage when leasing. But the tide turned quickly. Neighboring properties that were previously underperforming sold at discounts. New owners used their cost savings to renovate and undercut our rental rates. Suddenly, our competitive edge vanished, and we found ourselves with overpriced, outdated units. This experience imparted a crucial lesson: In real estate, you must always be prepared for market shifts — because the market ALWAYS shifts. Fast forward to today, and we’re seeing some eerily familiar patterns in the following areas: The Developer’s Dilemma …
DAVENPORT, FLA. — JLL has arranged a $69.6 million loan for the refinancing for Phase I of Atlantica at Town Center, a multifamily community located at 1121 Loblolly Lane in the Orlando suburb of Davenport. Phase I of the property, which was delivered in December 2022, comprises 360 units. Gregory Nalbandian, Kenny Cutler and Josh Odessky of JLL arranged the two-year, floating-rate bridge loan through Timbercreek Capital on behalf of the borrowers, Sovereign Properties and Invest Capital Group. Atlantica at Town Center features one-, two- and three-bedroom units ranging in size from 683 to 1,435 square feet, as well as a resort-style pool, gaming lawn, dog park, pet spa, fitness center, yoga and spin room, demonstration kitchen and coworking space.
NEW YORK CITY — A joint venture between nonprofit developer Community Access, affordable housing developers Spatial Equity and Duvernay + Brooks, as well as neighborhood preservation organization Cooper Square Committee, has acquired the site of the former St. Emeric church in Manhattan’s East Village. According to Wikipedia, the former Roman Catholic church was originally built around 1950 and closed in 2013 when the Parish of St. Emeric merged with that of nearby St. Brigid’s Roman Catholic Church. The joint venture plans to build more than 500 affordable housing units on the site, including homes for senior New Yorkers, formerly homeless individuals and those with special needs who qualify for supportive services. The development team expects to break ground on the first phase of the redevelopment in 2026 and may also pursue rezoning through a land use review process for the second phase. Denham Wolf Real Estate Services marketed the property for sale on behalf of the parish, which is overseen by The Archdiocese of New York.
PHILADELPHIA — Locally based developer NewCourtland has completed a 178-unit mixed-income adaptive reuse project in Philadelphia’s East Falls neighborhood. The project converted the former Eastern Pennsylvania Psychiatric Institution, which originally opened in 1956 and has been vacant since 2013, into a 12-story residential complex that includes 40 affordable housing units for seniors. NewCourtland won a bid for the 14-acre site in 2015 and subsequently brought in architecture firm Looney Ricks Kiss to facilitate the transition of the site into a mixed-income property.
COLUMBUS, OHIO — CASTO has begun development of Westrich, a $70 million multifamily project that is an expansion of the River & Rich apartment community in the Franklinton neighborhood of Columbus. This second phase of development includes 234 units on vacant land adjacent to River & Rich. Completion is slated for 2026. Westrich will be marketed as a separate entity from River & Rich. In addition to CASTO and the Columbus Metropolitan Housing Authority (CMHA), funding partners include The Robert Weiler Co., The Kelley Cos. and Mark Cain of S. Cain Development and Construction. CMHA provided the majority of the construction financing through the issuance of $47.2 million in CMHA general revenue bonds. The project team includes CK Construction, Dimit Architects, landscape architect REALM Collaborative and civil engineer EMH&T. Plans for Westrich include a four-story building with 114 units and a five-story building with 120 units atop 8,000 square feet of first-floor commercial spaces. There will be 229 parking spaces in a garage and adjacent surface lot. A private pedestrian walkway will connect the two buildings and provide access to the amenity deck. The majority of the new units at Westrich will be designated for households earning below 100 percent …
TRAVERSE CITY, MICH. — Greystone has provided a $28.2 million HUD-insured 221(d)(4) loan for the construction of Corners Crossing in Traverse City. Wallick Communities and Homestretch Nonprofit Housing Corp. are co-developing the 192-unit, $45 million multifamily community. Plans call for 96 one bedrooms, 78 two bedrooms and 18 three-bedroom units across eight buildings. Units will be designated for those earning between 80 and 120 percent of the area median income. Corners Crossing will also feature a clubhouse with an onsite management office and resident amenities, including a fitness center, computer center and patio. Construction is expected to take approximately 24 months and be completed in the second quarter of 2026. Brian Jones of Greystone originated the loan on behalf of JHT Wallick Holdings LLC. In addition to the loan from Greystone, the property will be financed with funds from the American Rescue Plan Act awarded by Grand Traverse County and the Michigan State Housing Development Authority. Additionally, Blair Township passed its first-ever Payment in Lieu of Taxes ordinance for the project, creating a fixed rate for the development’s real estate taxes.
DULUTH, MINN. — Standard Communities led a public-private partnership in acquiring Lenox Place Apartments in Duluth, an eastern Minnesota city along Lake Superior. The transaction is capitalized at $37.1 million. Built in 1980 and located at 701 W. Superior St., the affordable housing property features 152 units. There are 143 one-bedroom units and nine two-bedroom residences for seniors and individuals with disabilities. Standard will extend the affordability of Lenox Place Apartments for 30 years, with resident income restricted to 60 percent of the area median income. Funding for the acquisition included Low-Income Housing Tax Credits secured through the Minnesota Housing Finance Agency, and the Housing Redevelopment Authority of Duluth issued tax-exempt bonds. Huntington Bank provided the tax credit equity. Standard will significantly renovate the 14-story property at a cost of approximately $12 million. Residents will not be relocated during the renovations.
LONG BEACH, CALIF. — Los Angeles-based Meta Housing Corp., in partnership with Foundation for Affordable Housing, has broken ground on 1400 Long Beach, an affordable housing community in Long Beach, a suburb south of Los Angeles. Located at 1400 Long Beach Blvd., the development will be a six-story residential building offering 163 one-, two- and three-bedroom units. Onsite amenities will include a community room, technology hub and private courtyard. The project will offer housing for low- and moderate-income family households earning between 30 percent and 70 percent of the area median income. Project partners include Foundation for Affordable Housing, California Housing Finance Agency, Bank of America, Century Housing Corp., California Tax Credit Allocation Committee and California Debt Limit Allocation Committee.