CRANSTON, R.I. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $9.1 million loan for the refinancing of two adjacent multifamily assets in Cranston. Built in 2016, the property at 125 Midway Road totals 29 units in one-, two- and three-bedroom floor plans. The other building at 45 Poplar Drive is an adaptive reuse of a former Catholic school and features 20 one- and two-bedroom units. Robert Damigella of MMCC arranged the debt, which was structured with a 6.35 percent interest rate, 65 percent loan-to-value ratio and a 30-year amortization schedule. The borrower and direct lender were not disclosed.
HOLBROOK, MASS. — NEI General Contracting has completed construction of Maple on Franklin, a seniors housing project located about 15 miles south of Boston in Holbrook. NeighborWorks Housing Solutions developed the $18.5 million project, which spans 67,000 square feet and features 72 one-bedroom units for residents age 62 and older. The Narrow Gate served as the architect of the project, which involved the demolition of two existing buildings on the site. More than 500 applications were submitted for the 72 available units.
VERNON HILLS, ILL. — A partnership between Focus, Affinius Capital, Atlantic Residential and Centennial has opened The Domaine at Hawthorn Row in the Chicago suburb of Vernon Hills. The 311-unit luxury apartment complex is part of the redevelopment of Hawthorn Mall, a 50-year-old shopping center. The Domaine also features 54,000 square feet of retail space. Amenities include a lounge, dining room, game room, two-story gym, pet spa and outdoor terrace with a pool, sundeck and grilling stations. Units range in size from 600 to 1,330 square feet, while monthly rents start at $1,775. Residents can now earn one month of free rent on select lease terms, according to the property’s website.
ST. LOUIS — Berkadia has brokered the $7.5 million sale of Lynn Town Apartments in St. Louis. The 144-unit, garden-style multifamily property is located at 9675 Muriel Ave. The community was built in 1963. Andrea Kendrick, Ken Aston and Bobby Mills of Berkadia represented the seller, the original developer who had owned the property for 60 years. The buyer was undisclosed.
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How to Maximize Agency Financing for Affordable Housing
There are a variety of ways to build affordable housing, but implementing these strategies has become an increasingly difficult proposition in 2023. Affordable housing projects seem to face challenges on every front. Generally affordable housing developers will: Despite intensifying renter demand for new units, developers are struggling to make their projects financially feasible, says John Ducey, chief production officer in the affordable lending group at Walker & Dunlop. “Affordable housing developers are facing some of the toughest headwinds I’ve seen in more than 20 years in the industry,” Ducey says. “That means developers are forced to work harder than ever to structure deals that stretch scarce housing subsidies and maximize agency financing.” Challenging Conditions One impediment to affordable housing efforts is reduced future rent levels, related to area median income (AMI) caps the Department of Housing and Urban Development (HUD) imposed recently on LIHTC properties in many markets in the United States. The unexpectedly restrictive caps forced developers to slash revenue projections, scuttling some transactions and forcing many loan applicants to renegotiate or seek alternative financing to salvage deals. On the expense side, inflation and the labor crunch continue to drive up costs for new construction, renovation of older affordable …
HONOLULU — EAH Housing has broken ground on Aloha Iā Halewilikō, a 140-unit affordable seniors housing community in the Aiea neighborhood of Honolulu. The City and County of Honolulu are providing the land for the development. Other partners on the $62 million project include Hawai‘i Housing Finance & Development Corp. (HHFDC), the Bank of Hawai‘i and U.S. Bank. The development has been in planning stages for five years and is scheduled for completion in 2025. Located in a residential neighborhood adjacent to ‘Aiea Public Library on the former site of ‘Aiea Sugar Mill, Aloha Iā Halewilikō fulfills a part of the ‘Aiea Town Center Master Plan. The project is within walking distance to public transportation. A total of 13 units will be set aside for households with incomes at or below 30 percent of the area median income (AMI), 75 units for households with incomes at or below 50 percent of AMI, and 51 units for households with incomes at or below 60 percent of AMI. EAH is partnering with Lanakila Pacific, a local nonprofit services organization, which will provide access to its Meals on Wheels program. In Hawai‘i, EAH Housing currently manages 23 properties with over 2,700 units. The …
DALLAS — AMLI Residential has sold AMLI Design District, a 314-unit apartment community in Dallas. The property was built in 2013 and includes 26,830 square feet of retail space and 664 parking spaces. Units come in studio, one- and two-bedroom floor plans and are furnished with stainless steel appliances, quartz countertops, walk-in closets and individual washers and dryers. Amenities include a pool, fitness center, coffee bar, outdoor grilling and dining stations, multiple pet play areas, conference room and a skyline lounge. Roberto Casas of JLL represented AMLI Residential in the transaction. Melissa Quinn, Lee Weaver, Rob Rothaug, Cristian Sieman, Lauren Dow and Chris Grievous, also with JLL, provided an undisclosed amount of Freddie Mac acquisition financing to the buyer, international investment firm HASTA Capital. The sales price and financing amount were not disclosed.
SAN MARCOS, TEXAS — Dallas-based brokerage firm Vanguard Real Estate Advisors has arranged the sale of a multifamily development site in the Central Texas city of San Marcos. The site spans 22.8 acres at the southwest corner of Staples Road and Old Bastrop Highway. Jordan Cortez, Mason John and Haley Birmingham of Vanguard represented the buyer, South Carolina-based Woodfield Development, which plans to develop a 360-unit project at the site that will be known as Addie’s Point.
PHILADELPHIA — A partnership between Ensemble Investments, Mosaic Development Partners and Korman Communities has broken ground on a 614-unit multifamily project at the Philadelphia Navy Yard. The development will have two buildings that house a mix of luxury, market-rate and affordable residences. A formal groundbreaking ceremony will be held on Tuesday, Oct. 24, and completion of the project is slated for 2025. CBRE arranged construction debt for the project, which is being financed by a $78 million loan from insurance company Ullico and a $95 million facility from M&T Bank and Israel Discount Bank of New York. In addition, New York City-based Basis Investment Group has contributed $100 million in equity to the capital stack.
CHICAGO — Interra Realty has brokered the $4.1 million sale of a 35-unit apartment building in Chicago’s West Ridge neighborhood. Located at 2801 W. Lunt Ave., the property features 28 one-bedroom units, three two-bedroom units and four ground-level commercial spaces. The building was originally constructed in 1932. Patrick Kennelly and Paul Waterloo of Interra represented the buyer, Teko Menetti. Joe Smazal of Interra represented the seller, a local private investor.