Lument recently announced the closing of a $28.8 million Freddie Mac Unfunded Forward loan to finance the construction of Mesquite Terrace Apartments, a 297-unit affordable housing community in Phoenix, Arizona. Tim Hoppin, director in Lument’s Denver, Colorado office, was the lead on the transaction.
The sponsor is first-time Lument client, Trinity Housing Development, which has extensive low-income housing tax credit (LIHTC) transaction experience and a portfolio of approximately 2,637 units in 35 multifamily communities, mostly in the Midwest. The community will be co-developed by Housing for Hope Arizona, Inc. (H4H), a nonprofit affiliate of Catholic Charities Community Services (CCCS) that has been involved in the development of several other LIHTC projects.
SysAdmin Appreciation Day: Top Industry Leaders Share their Insights on IT and Data Ops
“We are excited to collaborate with Trinity Housing Development and Housing for Hope to provide this much-needed affordable housing community,” said Lument’s Hoppin. “We share Trinity’s philosophy that building efficient and sustainable quality housing provides a foundation for strong communities, so anytime we can help a developer do just that we are all in.”
Mesquite Terrace Apartments consists of three mid-rise residential buildings that are rent restricted under the low-income housing tax credit (LIHTC) program. Eleven units are reserved for renters at 50% area median income (AMI) or below and 285 units are set aside for renters earning 60% AMI or below. The unit mix consists of 129 one-bedroom/one-bathroom units, 78 two-bedroom/one-bathroom units, and 90 three-bedroom/two-bathroom units.
Construction on Mesquite Terrace Apartments is expected to be completed in March 2023. Upon stabilization, the $28.8 million Freddie Mac loan and tax credit equity will be used to pay off construction period bonds from a national bank. The capital structure also includes subordinate soft funding from government sources, including a $1 million City of Phoenix Housing Department HOME Loan and a $1 million Phoenix Community Development and Investment Corporation (PCDIC) loan.
The tax-exempt Freddie Mac loan features a 30-month unfunded forward commitment, 17-year term, 40-year amortization schedule, and a low, fixed interest rate. As a result of the community’s LIHTC affordability restrictions, Mesquite Terrace qualified for a targeted affordable housing (TAH) execution.
Read More: OnPoint Community Credit Union Introduces New 2% Cash Back Credit Card
