Apartment Finance Today

Regional Markets

Deal Roundup

APARTMENT FINANCE TODAY • May/June 2009

BY Rachel Z. Azoff

Affordable, Green High-Rise Debuts

Anaheim, Calif.—Jamboree Housing Corp. has opened Diamond Apartment Homes, a 15-unit green community designed by KTGY Group that provides housing and mental health supportive services for previously homeless individuals and their families. The one- and two-bedroom units, reserved for families earning 30 percent of the area median income, feature Energy Star appliances and private outdoor space. Community amenities include a 2,500-square-foot resident services center with case management offices; a teaching kitchen; computer lab; plus an outdoor recreation area featuring a tot lot and picnic area. Consistent with Jamboree’s increased commitment to sustainable development, Diamond is designed to be the firm’s first GreenPoint Rated community—a certification program developed by the nonprofit Build It Green.

Walker & Dunlop Provide $7 Million in Financing

Washington, D.C.— Walker & Dunlop provided a $7 million refinance loan for Garfield House, a 10-story, 104-unit high-rise apartment complex offering a mix of efficiencies and one-bedroom units. The loan, structured with a 10-year term and a 30-year amortization, was underwritten to a 52 percent loan-to-value with a 1.56x debt-service coverage ratio. Walker & Dunlop utilized Fannie Mae’s Dual DUS ERL commitment to allow the borrower to early rate lock the interest rate on a majority of the total loan proceeds and come back for additional proceeds based on the final due diligence prior to closing.

Mixed-use Project Goes Up Near San Diego

San Marcos, Calif. — Community Collective and the San Marcos Redevelopment Agency have broken ground on Autumn Terrace, a 93,900-square-foot mixeduse development. Slated for completion in April 2010, Autumn Terrace will include 103 affordable apartments; 7,500 square feet of commercial/ retail space; and roughly 200 parking spaces. Of the total units, 100 will be restricted for families earning 60 percent or less of the area median income. One-, two- and three-bedroom units will be available with monthly rents expected to range from $410 to $1,175.

The Redevelopment Agency of the City of San Marcos provided a $13.5 million loan for acquisition of the site and development of the project. Additionally, the developer has secured low-income tax credit financing and recently closed on its construction loan from Boston Capital.

Grandbridge Finances Senior Living

Houston— Grandbridge Real Estate Capital arranged a construction loan for Corinthian Village Senior Living, a 124-unit, affordable apartment community set to open next year. Several investors provided construction funding: The City of Houston provided HOME funds in the amount of $3.4 million; Trustmark National Bank provided $6.4 million in construction financing; and The United Methodist Foundation of the Texas Annual Conference provided $700,000 in mezzanine financing.

The property is the most recent phase added to Corinthian Pointe—a master-planned community serving as a model for successful affordable housing and community redevelopment in Houston.

Berkshire Buys Glo

Costa Mesa, Calif.— Berkshire Property Advisors has acquired Glo, a 201-unit, mixed-use apartment community in downtown Los Angeles, for $47.5 million, or $236,318 per unit, from a joint venture between Holland Partners and other equity participants. The sale, brokered by the West Coast office of Moran & Co., was financed with low floater tax-exempt bonds and carries $3.8 million in tax credits. The sale price of $47.5 million represents a 6.5 percent cap rate based on the buyer’s first year of stabilized income.

Glo is located within the Central City West neighborhood of downtown L.A., just two blocks west of the central business district. Apartments, ranging from studios to threebedroom units, include a stainless steel appliance package, granite kitchen countertops, and full-size washers and dryers. Amenities include two landscaped plazas; a pool area with private cabanas; a fitness center; and screening room. Glo also features 8,453 square feet of ground-floor retail space, anchored by a Starbucks coffee shop.

D.C.’s Ontario Court Gets a Facelift

Washington, D.C.—Ontario Court Apartments received a major facelift. The $9 million redevelopment of the 85-yearold 27-unit affordable housing community, along with the development of a new 4,000- square-foot Jubilee JumpStart Early Childhood Development Center, is the result of a publicprivate partnership with the federal New Markets Tax Credit (NMTC) program, the District of Columbia Department of Housing and Community Development (DHCD), Jubilee Housing, Jubilee Jump- Start, PNC Bank, and Enterprise Community Investment.

Using a $9.4 million NMTC allocation, Ontario Court Apartments was financed with $8.6 million in NMTC enhanced loans from Enterprise, which leveraged a $2.8 million NMTC-enhanced investment from PNC New Markets Investment Partners; a $2.9 million loan from PNC Bank; and a $3.4 million loan from DHCD’s Housing Production Trust Fund. The remaining funding was provided by the affordable developer Jubilee Housing.