Key financing has been set for the renovation and redevelopment of a notable affordable housing property in Oakland, California.
Leading financial services provider Merchants Capital recently announced that it has arranged $13 million in debt and $7.2 million in equity financing for the Adcock Joyner Apartments, a mixed-used property that was constructed as a hotel in 1915 and converted into affordable housing in the early 1990s.
Situated in the heart of downtown Oakland, the development provides housing for residents earning no more than 50% or 60% of the area median income. The property features 25 studio and 25 one-bedroom apartments with walkability to public transportation and major thoroughfares. The first floor includes more than 2,500 square feet of commercial space occupied by a local nonprofit that helps homeless, poor, and disabled individuals achieve health and self-sufficiency.
To finance the renovation, Merchants Capital provided more than $20 million in total debt and equity financing, which will fully fund the project through the 4% low-income housing tax credit program. Following completion of the renovation, the property will operate under a new Housing Assistance Payments (HAP) contract covering 100% of the revenue-generating units, ensuring the property will remain affordable for residents in the years to come.
“The California housing market is truly unlike any other in the country, and we are thrilled to showcase Merchants’ commitment to the area by serving as the financier for this important redevelopment project,” said Linda Hill, executive vice president of tax credit equity at Merchants Capital. “We are working to expand our presence nationally, and having the opportunity to partner on such a significant California property is a step in the right direction for our company.”
Significant renovations will be made in each residential unit, including upgrades to kitchen surfaces and appliances, bathroom surfaces and fixtures, plumbing, flooring, and electrical updates. Exterior renovations will include repairs to the building’s fire escape, new roofing and HVAC units, elevator upgrades, and enhanced security systems. The first-floor commercial space will be reconfigured and renovated, with new kitchen cabinets, fixtures, and flooring.
“We are excited about the project and our partnership with Merchants Capital and Progressive Affordable Development,” said James Hill, president of Adcock Joyner Preservation. “This renovation helps us continue our long-term objective of providing stable affordable housing in the downtown Oakland sector. We value our relationship with Merchants Capital and are most grateful for the expertise and support provided while we bring our vision into reality.”
