STERLING HEIGHTS, MICH. — Bernard Financial Group (BFG) has arranged a $4.2 million loan for the refinancing of a 231-unit multifamily property in Sterling Heights, a northern suburb of Detroit. Dennis Bernard and Joshua Bernard of BFG arranged the loan on behalf of the borrower, One Durham LP. Symetra Life Insurance Co. was the lender.
TRAVERSE CITY, MICH. — PACE Loan Group has arranged nearly $4 million in C-PACE financing for The Boardwalk, a short-term rental condominium project under construction in Traverse City. The property is being built in two phases. The first phase, which features 42 units with first-floor retail space, received $1.7 million in early 2023 and is slated for completion in March. The second phase, which features 48 units, received $1.8 million and is scheduled for completion in the second quarter. The project is utilizing modular construction methods. The senior lender for both C-PACE loans was a local credit union. The PACE proceeds will be used to finance energy conservation and renewable energy measures, including increased building insulation, Energy Star windows, high-efficiency HVAC and plumbing fixtures, and LED lighting. The renewable and energy conservation measures are expected to save $120,140 annually in the payback period of 13.5 years. The Boardwalk marks the fourth PACE project in Grand Traverse County and the 76th in the state of Michigan. The PACE program is administered in a public-private partnership through Lean & Green Michigan. C-PACE, or Commercial Property Assessed Clean Energy, is a financing tool that provides long-term, low-cost construction financing for new and existing …
WESTLAKE VILLAGE AND THOUSAND OAKS, CALIF. — FPA Multifamily has purchased a two-property apartment portfolio in Ventura County from a private multifamily investor for $153 million. The portfolio includes Oakview Apartment Homes, a 242-unit asset built in 1970 in Westlake Village, and The Biltmore at Thousand Oaks, a 167-unit property built in 1965 in Thousand Oaks. Kevin Green, Joseph Grabiec and Gregory Harris of Institutional Property Advisors, a division of Marcus & Millichap, represented the seller and facilitated the buyer in the deal.
LAKEWOOD, COLO. — NorthPeak Commercial Advisors has arranged the sale of 1975 Oak Street, an apartment building in Lakewood, just southwest of Denver. The asset traded for $10.5 million, or $239,285 per unit. Scott Fetter and Joe Hornstein of NorthPeak Commercial Advisors represented the undisclosed seller, while Kevin Calame and Matt Lewallen of NorthPeak Commercial Advisors represented the buyer in the deal. The 33,703-square-foot property offers 42 residential units.
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LIHTC Program Offers Lifeline to Struggling Multifamily Developers
It’s a tough time for much of multifamily development, but the Low-Income Housing Tax Credit (LIHTC) program offers incentives that make much-needed affordable housing comparatively easier to achieve under the current economic conditions. Building is expensive and financing is tight in the current multifamily market. However, as it has for the last 30 years, the LIHTC program provides solutions that increase the ease of creating and sustaining affordable housing, even when the overall multifamily market faces challenges. The program not only promotes the construction and acquisition of housing but also enforces conditions that help maintain the stability and preservation of affordable properties. The program is also needed to address the demand for affordable housing. The National Low Income Housing Coalition estimates that extremely low-income households represent 25 percent of the nation’s 44.1 million renters and reports a shortage of 7.3 million affordable and available rental homes. Historical Financial Resilience “The LIHTC asset class is resilient, if not countercyclical, under challenging economic times,” says Katie Balderrama, executive vice president of affordable equity at Walker & Dunlop. The firm typically sees a foreclosure rate of under 1 percent on properties supported by LIHTC. “Overall, our affordable housing assets tend to perform fairly …
STATESBORO, GA. — Rael Development Corp. has broken ground on Charme on Georgia Ave., a 694-bed student housing project located near the Georgia Southern University campus in Statesboro. The mid-rise development will offer 291 units in studio, one-, two- and four-bedroom configurations. Shared amenities will include a rooftop, resort-style swimming pool, fitness center, café, study/library space, billiards and gaming areas. The community is scheduled for completion in fall 2025.
ATLANTA — Woda Coooper Cos. Inc. and Parallel Housing Inc. have delivered Stanton Park Apartments, a 56-unit affordable housing community in Atlanta. The property is located at 1056 Hank Aaron Drive in the city’s Peoplestown neighborhood, which is situated near the Atlanta BeltLine’s Southside Trail. Stanton Park features 36 one-bedroom apartments and 20 two-bedroom units that are reserved for households earning 30 to 80 percent of the area median income (AMI). Ten units are reserved with project-based vouchers for residents who experienced homelessness. Financing included a $1 million loan from Invest Atlanta, the City of Atlanta’s economic development authority; a $6.5 million tax-exempt bond from the Urban Residential Finance Authority; capital investments from Atlanta BeltLine Inc.; LIHTC equity from Walker & Dunlop ($5.2 million) and Sugar Creek Capital ($3.5 million); a construction loan from Summit Community Bank; and a $400,000 grant from Partners for Home, an entity comprising Atlanta-based organizations that address homelessness in the city. Stanton Park’s amenities include a multipurpose room with kitchenette, central laundry, computer room, fitness facility, indoor bike storage and a picnic area with tables and grills. The project team includes architect Hooker DeJong, civil engineer Long Engineering, general contractor Woda Construction Inc. and property manager …
ROSEVILLE, CALIF. — USA Properties Fund has started construction on Terracina at Westpark, an affordable multifamily community in Roseville, a suburb northeast of Sacramento. Located at 3440 Westbrook Blvd. and 1040 Lower Bank Drive, Terracina at Westpark will offer 284 one-, two- and three-bedroom apartments; a community room; courtyard area with play equipment; computer workstations; and almost 500 parking spaces. The community will feature 71 three-bedroom units, 97 one-bedroom units and 116 two-bedroom units. Terracina at Westpark’s apartments will be available to residents earning 30 to 70 percent of the area median income for Placer County, about $25,740 for a two-person household to $81,060 per year for a five-person household. WNC & Associates is the tax credit investor for the $119.2 million project. JPMorgan Chase & Co. is the construction and permanent lender on the project.
NEW YORK CITY — Douglaston Development has topped out a $320 million multifamily project located at 1057 Atlantic Ave. in the Bedford-Stuyvesant neighborhood Brooklyn. The 17-story building will ultimately house 456 apartments, 137 of which will be reserved as affordable housing. Units will come in one-, two- and three-bedroom floor plans. Amenities will include a fitness center, lounge, golf simulator, game room, screening room, children’s playroom and a landscaped rooftop deck, as well as 31,000 square feet of ground-floor retail space. Greystone Capital Advisors arranged financing for the project, which included $185 million in construction financing from Wells Fargo Bank, M&T Bank and BankUnited. Funds managed by Ares Real Estate also have a preferred equity investment project in the development, which is slated for completion in late 2025.
OLATHE, KAN. — Hunt Midwest and Principal Senior Living have completed 21 new memory care residences at Benton House of Olathe in Kansas. The expansion project more than doubles the number of memory care apartments available in the community’s Beacon Neighborhood, an exclusive neighborhood within the Benton House community dedicated to seniors experiencing memory loss. The first residents are scheduled to move in to the new apartments in March. Benton House of Olathe now offers 76 total residences, including 35 memory care apartments and 41 studio and one-bedroom assisted living suites. The property features a variety of indoor and outdoor amenity spaces around three landscaped courtyards. The project team included Lamas Architects, Schlagel and Associates and Meyer Brothers Building Co. Hunt Midwest and Principal currently own and operate a portfolio of six assisted living and memory care communities in metro Kansas City.