More than $153.6 million in tax-exempt and taxable construction loans has been arranged for a 387-unit affordable housing community in Elk Grove, California.
Greystone affiliate America First Multifamily Investment (NASDAQ: ATAX) is providing the financing to help build the Sacramento County development. Frank Bravo, managing director at ATAX, originated the transaction.
The Poppy Grove development is a three-phrase affordable apartment home community that, upon completion, will include 14 residential buildings, a business center, a clubhouse, an outdoor pool, a laundry facility, and an outdoor playground and recreation area, as well as gated access and security on the 16.73-acre site. The units will be restricted to residents earning between 30% and 80% of the area median income.
At stabilization, and no later than 36 months from initial closing, the tax-exempt loan for the project will be partially paid down, and Greystone will provide up to $42.8 million in permanent Freddie Mac tax-exempt loan financing in the form a 15-year term, 40-year amortized facility.
The borrower’s administrative general partners are affiliates of UrbanCore Development and E. Smith & Co., and the borrower’s managing general partners are affiliates of nonprofit Oakland Economic Development Corp. The limited partner and tax credit buyer is Red Stone Equity Partners.
“This project would not be possible without critical tax-exempt financing, which enables developers to create housing that addresses the demand for affordable housing in the Sacramento area and throughout the nation,” said Ken Rogozinski, CEO of ATAX.
Founded in 2012 by Michael E. Johnson, UrbanCore Development has developed real estate in the San Francisco Bay Area for the last 10 years. The company has developed mixed-income, mixed-use, and affordable housing projects from the initial conceptual planning through the design and construction phases.
E. Smith & Co. is a San Diego-based real estate development, asset, and property management company that has engaged in over $500 million in real estate transactions in California and throughout the United States.