MINNEAPOLIS — LS Black Development recently broke ground on the $71 million Canvas Apartments affordable housing development in Northeast Minneapolis. The property’s 160 units will all be reserved for residents earning between 30 to 80 percent of the area median income (AMI). The project will feature one-, two- and three-bedroom units, as well as 23,000 square feet of production space, which encompasses both commercial and industrial uses. Completion is slated for spring 2024. The Minneapolis Public Housing Authority is providing 11 project-based Section 8 vouchers for the project. Canvas Apartments is LS Black’s first development project since adding a housing division. The St. Paul, Minn.-based company was formed in April 2020 to build, acquire and own affordable and workforce housing properties. It is a subsidiary of LS Black Constructors, a Minnesota-based construction and development services provider.
NEW YORK CITY — Bellwether Enterprise Real Estate Capital has provided an $11.7 million Freddie Mac permanent loan for Bronxview at Serviam, a newly constructed mixed-income complex located at 2885 Marion Ave. The eight-story building houses 26 one-bedroom units, 66 two-bedroom apartments and 22 three-bedroom residences. Jim Gillespie of Bellwether Enterprise originated the financing on behalf of the borrower, Fordham Bedford Housing Corp. The loan carried a 30-year term and a fixed interest rate.
PORTLAND, ORE. — Urban Development Group has received two separate loans, totaling $40 million, for two apartment communities in Portland. Dwight Capital provided a $24.9 million HUD 223(f) loan for The Kathryn Ann and a $15.2 million HUD 223(f) loan for The Sellina. The 146-unit The Kathryn Ann and the 90-unit The Sellina both feature dog wash stations, indoor bicycle storage and community courtyard. Both loans benefitted from a Green Mortgage Insurance Premium Reduction set at 25 basis points because the properties achieved Energy Star certifications. The Kathryn Ann also has an affordability component, as 15 percent of its units are restricted to 80 percent or less of the median family income. These loans are the seventh and eighth HUD loans that Dwight Capital has closed for the borrower. McBride Capital brokered the transactions.
CHELSEA, MASS. — MassHousing has provided an $18.1 million loan for the refinancing of Admiral’s Tower, a 100-unit housing cooperative located in the northeastern Boston suburb of Chelsea. The six-story building was originally constructed in 1986 and houses 26 studios and 74 one-bedroom units. The borrower, CSI Support & Development Services, will use a portion of the proceeds to fund capital improvements and preserve the property’s affordability status. Renovations will include kitchen and bathroom refurbishments, masonry repairs, new doors and fencing and the addition of a fitness center and staff offices.
IRVING, TEXAS — New York City-based bridge lender Pembrook Capital Management has provided a $12.2 million loan for the recapitalization and renovation of The Braxton Apartments, a 125-unit complex in Irving. The unit mix comprises 51 studios, 57 one-bedroom apartments and 17 two-bedroom residences. Approximately half of the units are reserved for renters earning between 30 to 80 percent of the area median income. The borrower was not disclosed.
CHELSEA, MASS. — A partnership between developers John M. Corcoran & Co. and Joseph J. Corcoran Co. and private equity firm Marcus Partners has received $93 million in construction financing for the redevelopment of the Innes Apartments in Chelsea, a northeastern suburb of Boston. The project will convert an eight-building complex that was originally constructed in the 1950s into a mixed-income community with street-level retail space. A syndicate of lenders led by Cambridge Savings Bank provided the debt. A timeline for completion was not disclosed.
SAN DIEGO — Preservation Equity Fund Advisors has purchased Alcove East Village (formerly known as Nook East Village) in San Diego from an undisclosed seller for $20 million. Built in 2019, the five-story Alcove East Village features 91 affordable residences for individuals and veterans. Each apartment averages 254 square feet and includes kitchenettes with under-counter refrigerators, two-burner stove tops, microwaves, private bathrooms and hardwood floors. Select units offer balconies. The community has eight units allotted for residents earning up to 30 percent of the area median income (AMI), two units at 65 percent AMI, 80 units at 80 percent AMI and one manager unit. Regulatory agreements require five units to be fully handicap accessible and two unit to be accessible to the hearing and visually impaired. As of September 2022, the property was 95.6 percent occupied. Onsite amenities include a community room, laundry facilities, elevator, controlled access, leasing office, rooftop patio, bike parking, Amazon Hub lockers and valet trash pickup.
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Walker & Dunlop: Affordable Housing Crisis Calls For New Solutions, Effective Programs
By John Ducey, chief production officer of Walker & Dunlop’s affordable lending group Private industry and the federal government are rallying to recover ground lost to a housing affordability crisis that has been decades in the making. Nearly half of the nation’s renters, 46 percent, are housing cost-burdened, which the Census Bureau defines as those families paying 30 percent or more of their income on rent and utilities. The burden is higher for some, with nearly one in four families (23 percent of Americans) paying half or more of their income for housing. The situation calls for a change in tactics, a recognition of recent policy failures and a shared commitment to double down on programs with proven efficacy. As a nation we must ask, what can we do differently to put more homes within reach for the growing ranks of Americans who struggle to meet basic housing costs? A Building Problem The gap between housing costs and strained household budgets has widened due to both insufficient supply and wage stagnation that has fueled demand for affordable housing. The larger of the two issues — a lack of supply — traces chiefly to the 2008 financial crisis, which put a …
DALLAS — A partnership between a subsidiary of locally based investment firm CAF Cos. and Goldman Sachs Asset Management has acquired a portfolio of 16 multifamily properties totaling 2,766 units in Dallas-Fort Worth. The names and addresses of the properties, which are collectively known as The Obsidian Portfolio, were not disclosed, but all were constructed as market-rate projects. The new ownership plans to self-impose rent restrictions and social programming for renters at a variety of income levels. New services will include childcare, afterschool tutoring, workforce development and financial literacy. The seller was not disclosed.
LAHAINA, HAWAII — Ikaika ‘Ohana and Hunt Capital Partners, in collaboration with Urban Housing Communities, have opened Kaiaulu o Kupuohi, an affordable housing community in Lahaina. Located at 258 Kupouhi St., Kaiaulu o Kupuohi features 89 apartments divided into 20 one-bedroom units, 34 two-bedroom units and 35 three-bedroom units. The apartments are reserved for families earning up to 60 percent of the area median income. Onsite amenities include a community center, management, tot lot, barbecue/picnic area, laundry facilities and ample parking. Goodfellows Bros. and Maryl Group Construction served as general contractors and Design Partners served as project architect. ThirtyONe50 Management operates the asset. The total cost for Kaiaulu o Kupuochi is $64.6 million. Hunt Capital Partners provided $21.9 million in federal and $8.1 million in Hawaii state Low-Income Housing Tax Credit (LIHTC) equity for the project. Other funding sources include the Bank of Hawaii, which provided a $27.6 million construction loan and an $8.2 million construction-to-permanent loan; the Hawaii Housing Finance and Development Corp., which provided $17.1 million in Rental Housing Revolving Funds; Maui County, which provided a $6.4 million permanent loan; and Ikaika ‘Ohana, which provided a $725,952 permanent loan.