Greystone Affiliate Lends $33M for LA Homeless Housing Development
By Andrew Coen April 7, 2021 2:19 pm
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LSA Capital and Aedis Real Estate Group have landed $33 million in construction financing for a Los Angeles supportive and homeless housing development, Commercial Observer has learned.
America First Multifamily Investors (ATAX) supplied tax-exempt and taxable loans for the $45.7 million construction of a 67-unit permanent housing building and a 21-unit transitional housing building to be located within South-Central L.A., the Greystone affiliate announced Wednesday.
The transaction includes a 24-month loan from ATAX, with additional equity lined up from RBC Community Investments, a low-income housing tax credit investor. Freddie Mac is also providing permanent financing through tax-exempt loans as part of its affordable housing platform.
The planned property, known as Hope on Avalon, will include a five-story building that will provide housing to 66 homeless individuals seeking permanent supportive housing. The initiative also includes a two-story transitional housing building with 21 larger units that can accommodate up to 80 chronically homeless individuals. Both buildings will be built using modular construction that provides cost savings and timeline efficiencies.
“Homelessness is an ever-growing challenge throughout the U.S., and Los Angeles County in particular has seen a 68 percent increase in the homeless population since 2013,” Frank Bravo, managing director at ATAX, said in a statement. “This transaction with LSA and Aedis will help provide critical housing to those who need it most.”
The Hope on Avalon development is supported by social services contracts provided by the Los Angeles County Department of Health Services’ flexible subsidy pool. The department’s program administrator, Brilliant Corners, will provide long-term operating subsidies for both the permanent and transitional units.
“It is a basic human need to have a safe and secure home,” Scott Baldridge, owner of Aedis Real Estate Group, said in a statement. “Through Hope on Avalon and our relationships with LSA and ATAX, we can develop multi-family supportive housing that promotes community integration, greater independence, and well-being for people transitioning from homelessness.”
